INDUSTRY NEWS

London office sector regaining stability

The London office space sector of the property market is beginning to show some signs of stability, although there is still some way to go yet, a new report has stated. Falls in rental revenue slowed and even halted in some areas during Q2 2009.

Although further declines in rent are expected for the remainder of the year and possibly through the next, the rate of decline is no longer as rapid, leading analysts to predict that the worst is almost over.

Investment in London’s commercial property increased significantly in Q2, with a 58 percent rise on Q1 – the first increase in over a year. Middle Eastern and European investors have been credited with much of the improvement, taking advantage of the weak pound to snap up property at bargain prices in the hope of making exceptional returns when the upturn finally comes.