Office rental rates 'to rise' in 2010

03 February 2010

Written by Simon Whittaker

Commercial mortgage holders could be affected after it was predicted that there would be a "double-digit rental growth" in 2010.

At Knight Frank's Central London office market breakfast, the property specialists revealed their predictions for the coming year.

Rental rates of offices in the capital are expected to rise due to an upswing in global trade, it was predicted.

Furthermore, property prices should rebound and stay stable because there is increased interest in investment from sovereign wealth funds.

Head of west-end investment for the firm Ker Gilchrist said: "We are not subscribers to the mini-bubble theory, as rental growth is forecast and there are encouraging signs in the occupational market - this is drawing in more investors."

The focus will be on development sites and refurbishments this year, he added.

Knight Frank claims to be the world's leading residential and commercial property consultancy.

It has core objectives of progressing global growth and is involved in both spectrums of the property market.

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