Office rental expectations in London have risen significantly in the first quarter of 2010, according to new data.
Rental expectations for office space at
commercial development sites in London have risen at their fastest rate in over two years, it has been claimed.
The latest figures from the Royal Institution of Chartered Surveyors (Rics) indicate that a net balance of 57 per cent of surveyors anticipated a rise in rental income for London office space.
However, the picture for
property investment firms across the rest of the UK is not so good, with available office space rising and rental remaining stagnant.
"The latest results suggest that a still modest recovery in lettings demand has greatly lifted rental expectations for London offices where development has floundered in recent years due to a dearth in development finance," said Rics senior economist Oliver Gilmartin.
In addition, there are worries that inevitable public sector job cuts following the election will have an effect on demand for commercial property, Mr Gilmartin claims.
Earlier this month, management agency Savills claimed that funds had returned to London's property investment market, following the recession.
Posted by Allan Flowers
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