According to experts, the increase will cover the markets: West End in London (increase rents by 7.3% compared to the previous year), Brussels (5.5%), Lyon (8.7%), Düsseldorf (5.8%) and Hamburg (4.3%). Overall, rents in the central business areas in Europe will increase by 1.4 percent., which is caused by the decline in interest in some markets and increase rents caused by the euro zone crisis.
Rents are going up
Positive rental growth is projected in prime locations at the end of 2012 in comparison to the previous year, which is associated with a decrease in the availability of prime space in the central business areas - according to a recent report from Savills.
- Our chart illustrating rents suggests that the majority of office markets are at the level of its 10-year average, with minor differences in the regional markets.TMT sector (Technologies, Media, Telecommunications) was one of the strongest in the first half of 2012, particularly in Paris, Dusseldorf and Milan. Together with services for business, TMT sector upheld the demand - Says Lydia Brissy, European Business Manager for market analysis.
In the Savills report, experts point out that during the first six months of this year, the number of transactions declined by slightly more than 4 percent. But not everyone felt the uncertainty prevailing in the economy. Growth was recorded in Amsterdam (65%) and Brussels (10%).
- We expect that the demand in the second half of 2012 will be higher than in the first half and we expect that the major markets such as Amsterdam, Frankfurt and Brussels will increase the total number of transactions in relation to 2011.Across Europe, we expect that the average number of transactions in 2012 will reach a lower value than in 2011, which is due to the ongoing uncertainty in the euro zone, which will affect the demand - Says Julia Maurer, an analyst in the Savills European market analysis team.