Office space rents in London are set to soar in the second quarter, surveyors have predicted.
In a poll of commercial property surveyors conducted by the Royal Institute of Chartered Surveyors, 57 per cent more agents forecast that rents would rise than fall.
The latest result is the first positive figure for two years and is being interpreted as an irrefutable signal that the commercial property market in the capital is on the road to recovery.
However, the outlook among property professionals outside London is less optimistic, with rents largely expected to remain subdued.
Across the UK, 14 per cent more surveyors anticipate a fall than a rise during the period between April and June.
RICS’ report stated: “Commercial property lettings activity continued to pick up across office and industrial property for the second consecutive quarter, although investment demand has moderated somewhat outside the London metropolitan area.”
The latest signs of recovering conditions in London come after office rents in the first quarter of 2010 rose from £42.50 per square foot to £47.50.
This represents an increase of 12 per cent, but still leaves rents significantly below their peak of £69.50 achieved during the third quarter of 2007.