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Q1 2009
European Offcie Markets
- Following on from the falls in net effective rents, prime headline rents began to decline in H2 08 in most cities. Annual prime rent change is currently -4% on average with some double digit falls seen in few large business centres.
- Our forecast suggests an additional 8.1% rent contraction until the end of 2009, which will be the result of the combined threat of softening demand and increasing supply.
- Further to the 48.4bps outward yield shift between Q1 and Q3 last year, the average prime yield moved out by a further 20.2bps to 6.10% suggesting a deceleration of price movement. Restrained investment activity is likely to continue until at least the second half of the year.
CONTATTI
Eri Mitsostergiou +30 210 6996311
emitso@savills.com
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