Prime rental growth in Europe slowed over the second half of 2007. But in some cities, prime rents increased during the last quarter of the year.
According to figures from Jones Lang LaSalle, prime rents increased by 14.3% in Luxembourg, 13.3% in Moscow and 4.2% in Lyon.
Strong rental growth was also reported in the central and eastern European markets, led by Moscow with a rise of almost 42% over the past 12 months.
Economic activity and high employment have helped push up the demand for European office space, with take-up reaching an all-time high of 14m m2 in 2007, 7% more than the previous year.
Take-up in Düsseldorf, Moscow, Edinburgh and Lyon increased by more than 43% in 2007.
The only cities where demand fell were Prague, down by 23% The Hague, down by 30% and Rotterdam, which posted a 16% decrease in its take-up level.
The diagram below indicates the European cities in which Jones Lang LaSalle estimates each prime office market is within its individual rental cycles as at the end of December 2007.
