A pre-Christmas Central London investment rush has been forecast, with returns expected to bounce back to close to the long-run average in the second half of 2012.
Office rents are expected to rise by an average of 3% in the capital this year, making them attractive assets to investors, Cluttons has forecast in its Q1 commercial property market outlook report.
Occupiers are also likely to look outside prime Mayfair offices, and opt for slightly cheaper West End rents in Marylebone and Soho.
The agent added that the trend anticipates marginal rental growth in the South East offices market.
Cluttons said: “Although we expect values to fall further doing 2012, for property outside prime Central London, we should this year see the bottom of the property cycle. The second half of 2012 will be the time to buy property in good locations. For cash-rich investors, able to take a long-term view, this year will present opportunities.”
joanna.bourke@estatesgazette.com
