EN | FR
Office property confirmed buoyancy for 2007
19 Jun, 2007, Paris
“ Even though the 2006 results were not exceptional, the European office property market has confirmed its buoyancy since the beginning of the year and continues the tendencies observed in 2006” pointed out Thierry Juteau, General Director of Cushman & Wakefield France.
The principle tendencies observed in the first quarter of 2007 revealed by the Cushman and Wakefield Office department’s international property consulting services:
- With a take-up totalling 250,000 sq. m., the Inner Paris market remains in the top European locations.
Although Amsterdam stands out with excellent performances and its total take-up amounts to 215,250 sq. m., the ranking remains unchanged in the first quarter of 2007. The London, Moscow and Madrid markets are still the most active and account for more than 200,000 sq. m. The market in the Spanish capital has confirmed its buoyancy with a 280,000 sq. m. take-up. In a positive regional context with a 700,000 office take-up in the Ile-de-France region, the Inner Paris market remains particularly attractive with a 250,000 sq. m. take-up.
- Prime Rental Values: London keeps its first place.
With the exception of a few cities whose rent have markedly increased such as Moscow (601 €/sqm/yr), Madrid (432 €/sqm/yr) and Warsaw (300 €/sqm/yr), the European tendency is once again stable. In Paris the central business district pursues it’s progression with 750 €/sqm/yr, still quite far from the London west end where we observe a progression of more than 150€, with a rent of 1 745 €/sqm/yr. The British capital conserves its first place ranking ahead of Tokyo and Hong Kong.
- Vacancy levels decrease throughout Europe.
Contrary to Paris Ile-de-France, where the vacancy level remains stable (6,59%) the European tendency is on the decline whether it be cities that register high vacancy such as Frankfurt (15,9%) or Amsterdam (14%), or cities that register an increasing shortage of tenders such as Warsaw (3,9%). In the Polish capital (which display an offer of 100 965 sqm) as in the majority of the eastern markets, the deficiency of available markets is more and more striking.
Generally speaking if the performances of the western markets such as Barcelona, Madrid or Dublin confirm the aggressiveness of the local economies, London and Paris remain dominant. As for the German and Netherlands market, their reorganization continues. In eastern Europe, if Warsaw and Moscow distinguish itself more, they will reduce the gap with the principal office markets of the west and will attract marked interest from international investors. Sofia and Bucharest are taking advantage of the recent entry of Bulgaria and Romania in the European Union and are following the same tendency.
“The European growth recovery has not yet significantly taken effect on the real estate market”, concluded Thierry Juteau.
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