West End office availability continues to be squeezed, and rents are “increasing substantially”, according to latest research from Colliers International.
The agency’s property snapshot said sub markets of the West End are experiencing strong rental growth, and demand continues to remain high. However, in the City demand is patchy, and regional centres are quiet, but growth is forecast for the second half of the year.
In the retail sector, Colliers warned that landlords are bracing themselves for stress as retail turnover and rents continue to fall, and administrations take a toll.
Meanwhile, in the residential market, modest house price declines are expected in 2012, with some knock on effects from tax changes on top-end properties. Foreign support for London prime will be tested as other world cities provide alternatives.
joanna.bourke@estatesgazette.com
