Office rents in central London could fall by as much as ten per cent in the next year

| October 7, 2012 | 0 Comments

By
Alex Hawkes

09:36 EST, 7 October 2012


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09:36 EST, 7 October 2012

Office rents in central London could fall by as much as ten per cent in the next year, a respected economic forecaster has suggested.

Experts had been expecting big increases over the next few years because of the slow pace of building.

Experts from consultancy Capital Economics said: ‘The weakness of the CBI/ PwC Financial Services Survey suggests that, over the next 12 months, central London office rental values could fall by as much as ten per cent.’ 

London rents

The survey showed a first fall in business volumes for financial services companies since June 2009.

Capital Economics has been predicting that rents will fall. The consultancy’s latest assessment suggests a sharper dip than thought.

Kelvin Davidson, a property economist there, said: ‘Year-on-year falls of ten per cent by mid-2013 look overdone, but, spread over a two-year horizon, falls in central London office rents of about ten per cent look plausible.’

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