London is leading the recovery of the European market with prospects of a 40% drop in vacancy rates and a doubling of take-up in business accommodation this year.
These improvements are expected to generate office employment opportunities and support demand for office space in the medium to long term.
“Here, global links have been the critical in the early rebound”, commented Andrew Burrell, Head of office research at King Surge.
This revival has already resulted in a 10% rise in prime rents. London is also virtually the only European city in which speculative office developments are re-starting. Other European cities are starting to see improvement too, but the British capital is showing the most promising signs of recovery.
“In western Europe, the green signals are clearest in London, Geneva and Paris, where businesses have benefited from well-established global connections, particularly in finance”, said Andrew Burell.
Currently the recovery of south Europe is looking the least promising due to the Greek debt crisis; the outlook for office markets in Athens and Madrid is grim with both cities expecting a continued market slump.
“Economic forecasts suggest that the larger international centres in the west will continue to perform well, The global reach of London ensures it is the largest creator of office jobs over the next five years. Bucharest, Frankfurt, Paris, Amsterdam, Munich and Milan are also set to expand at healthy rates ,” continued Mr Burell.
Property consultants King Surge are one of the biggest international consultancies in Europe with offices in 14 European countries. The company are also expanding in the Middle East with plans to open a new office in Dubai.