Prime European office rents rose at a higher than expected rate of 4% on average in the first six months of 2014, according to research from Savills.
Prime European office rents rose at a higher than expected rate of 4% on average in the first six months of 2014, according to research from Savills.
This compares to a negative 0.6% in the year-earlier period.
Secondary rents also posted the strongest growth in the past five quarters at 2.4% in the first half of 2014.
'The strong rental growth indicates that the improved business sentiment is being reflected in tenant demand for Grade A office space, which is increasingly failing to be met by sufficient supply,' commented Julia Maurer of Savills European research.
Overall rental growth was positive in almost three quarters of the markets covered in the survey with Dublin and London City posting the highest increases at 33% and 27% respectively.
Savills is predicting that prime CBD rents across Europe will grow by 3.4% on average this year. Dublin and the London markets of the West End and City will continue to drive growth as will Munich where there is an ongoing mix of stable demand and limited Grade A supply, the broker said.