Prime office rents in Moscow increased by more than 40% in 2010, marking the strongest rental growth increase in Europe, according to King Sturge’s latest quarterly European Property Indicators. Prime high street and warehouse rents rose at a slower pace, by 11% and 9% respectively.
Prime office rents in Moscow increased by more than 40% in 2010, marking the strongest rental growth increase in Europe, according to King Sturge’s latest quarterly European Property Indicators. Prime high street and warehouse rents rose at a slower pace, by 11% and 9% respectively.
Most occupier markets across Europe stabilised over the year, with London and Paris continuing to lead the way in terms of rental growth. The office sector has seen the most significant recovery in prime rents with virtually all surveyed cities recording stable or rising rents in Q4 2010, the report concluded
Looking back over 2010, Alexander Colpaert, European Research Associate at King Sturge, and the report’s author, said: 'Dublin and Sofia recorded the worst rental performances in 2010. The occupier market in Dublin has been severely impacted by the economic crisis. In the year to Q4 2010, prime office rents declined by almost 19%, while prime high street and warehouse rents dropped by 28% and 19% respectively.'
Colpaert predicted that available supply will tighten in certain markets across all property sectors, due to the near moratorium on speculative construction over the past two years. 'For example, London, Paris and Moscow are all seeing an increasing shortage of available grade A offices. In these markets there will be an opportunity for landlords to recycle and refurbish secondary stock and return it to the market in the next two years.'
