City of London office rental values have soared by 25 per cent over the last 12 months, figures reveal.
The surge comes amid a supply shortage after a number of projects were put on hold as well as stronger demand, as health begins to return to the economy.
According to Drivers Jones Deloitte, these have combined to push rents to £55 per sq ft in London’s central financial district. The Financial Times has dubbed this the most marked increase in office rents in the City in 22 years.
Anthony Duggan, head of research at Drivers Jonas Deloitte, said: “After a significant slowdown in the face of the financial crisis, the London market has bounced back in terms of both occupational and investment markets.
“Although we are not expecting rents to continue at the pace seen in 2010, we do expect double-digit rental growth again in the City.”
News of developments comes after a study of UK companies conducted by TNS BMRB found that London remains the best European city for business. Paris and Frankfurt were in second and third place respectively.