London office space rent 'likely to increase'

14 July 2011

Written by Jeni Browne

Commercial mortgage holders may find London to be the best place for property investment.

This is according to Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, who said real estate rents are increasing in the capital, particularly for office space.

He noted that "demand is outstripping supply", which will be pushing up the average rental price of the area over the near future.

Although work on some high profile construction projects continued during the credit crunch, this "isn't at a fast enough rate to keep pace with demand", the expert continued.

Mr Rubinsohn noted that higher rents are "a legacy of the sharp curtailment in development" over the last few years.

His comments follow research from Colliers International, which found the amount of unoccupied Grade A office space fell by 17 per cent over the last year, whereas the availability of property overall is at its lowest position for 30 months.

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