City of London office rents are forecast to rise again next year compared with most other large European cities where the slowdown is set to continue.
London is leading the European property cycle, according to DTZ, the global real estate adviser, with City rents for the best quality office space set to rise 8% in 2010. Rents in other European cities are forecast to continue to fall or stabilise at best.
DTZ has upgraded its forecast for London, reflecting the generally more positive market sentiment over the past few months. The rental market is perceived to have reached a low point following a two-year slump.
Availability fell in the third quarter of 2009 in central London, according to DTZ, marking the end of seven consecutive quarters of rising vacancy rates.