The IPF has forecast rising office rents across the periphery of Europe in the future, despite a decline in income for this year.
Forecasts for the next five years indicate an average rental growth rate across 29 surveyed cities of 2.2% despite an increasing number of sub-zero rates for 2015 and slowing rates thereafter.
Negative forecasts for 2015 now extend to eight cities, compared to five in May this year and now include Oslo, Paris’s CBD and Brussels.
Moscow’s 400bps increase on predictions six months previously still puts it at the bottom of those locations surveyed at -9.3% rental growth for 2015.
Dublin was on the other end of the scale, with predicted increases of 15.8% for 2015.
The story for 2016 looks to improve, with the IPF predicting just four cities – Warsaw at-3.6%, Moscow, Oslo and Zurich – experiencing declining office rental incomes.
Of the remaining 25 cities surveyed, Paris la Defense, Helsinki and Prague will experience a 1% growth in income throughout the year, with Dublin and Madrid leading the way with 10.6% and 9.2% growth respectively.
Three year averages indicate that 25 cities surveyed will experience positive rental growth over the period with 22 of those delivering increase above 1%.
Over five years, only Moscow is expected to experience negative rental income growth at -0.6%.
