EXPO REAL: Development pipeline dry-up will drive European rental growth in 2011, Savills says

Published 05th Oct 2010

Office rents across Europe will rise in 2011 against the backdrop of a 45% drop in development completions in the year, Savills said at the EXPO REAL conference in Munich today.

The property consultancy said it expects European take-up and employment to grow, further boosting office rents.

The property consultancy said Warsaw is likely to see the largest growth, a 12.5 in rental values next year, followed by Paris at 5.9% and London’s City and West End markets at 5.3%.

It also said it expects rental growth in most European centres, averaging at around 3%. Only Brussels, Amsterdam and Dublin are forecast to see 0% rental growth.

Lydia Brissy of Savills European research said: “The forecast rental growth is really very positive news for Europe as some of these cities have recorded rental falls over the past year, following the economic uncertainty caused by the global credit crunch.

“Although the development pipeline tap has been turned off for 2011, we will see some significant quantities of space delivered in 2012.”

In 2012 Savills said it expects to see European development pipeline growth of 33%, totalling 2.6m sq m (28m sq ft).

Source: ' Property Week '

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