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Commercial Property News
City of London 'could see quick rent recovery'
The current shortage in grade-A commercial property across London could help fuel a quick recovery in rental prices.
This is according to senior economist at the Royal Institution of Chartered Surveyors Oliver Gilmartin, who explained that, over the past two years, there has been "a complete cut-off in development activity" across the capital.
He noted that this is "starting to manifest itself now in rental expectations", with demand for business property from overseas and multinational firms companies helping to push rents up.
However, the expert added that the recovery of the market is largely dependent on the growth of the global economy, adding that there is "still a debate" regarding how strong this will be once stimulus measures are removed by central banks.
Mr Gilmartin was speaking after figures released by Knight Frank earlier in the month suggested that some parts of central London could see double-digit rental growth this year, with rises of 19 per cent forecast for prime locations in the City.
This is according to senior economist at the Royal Institution of Chartered Surveyors Oliver Gilmartin, who explained that, over the past two years, there has been "a complete cut-off in development activity" across the capital.
He noted that this is "starting to manifest itself now in rental expectations", with demand for business property from overseas and multinational firms companies helping to push rents up.
However, the expert added that the recovery of the market is largely dependent on the growth of the global economy, adding that there is "still a debate" regarding how strong this will be once stimulus measures are removed by central banks.
Mr Gilmartin was speaking after figures released by Knight Frank earlier in the month suggested that some parts of central London could see double-digit rental growth this year, with rises of 19 per cent forecast for prime locations in the City.
Mon, 8th Feb 2010