Office space in the West End of London is once again the most expensive in the world, rental figures from Knight Frank reveal.
According to the property agent’s annual Global Real Estate Markets report, the cost of renting office space in the area is now £85 per square foot.
Rents in the West End have surged by 31 per cent over the last year, sending London to the number spot and knocking Tokyo into second place.
The City of London also experienced marked growth with office space in the capital’s financial district up to an average of £55 per square foot, to see it take fifth place in Knight Frank’s rundown.
The turnaround has been attributed to improving conditions in the wider economy driving renewed demand for grade-a space.
The company’s report stated: “At the start of 2010, prime office rents were still falling in a significant number of the continent’s markets but by the end of the year, rents had either stabilised or begun to recover in most markets.
“The central London office market has led the recovery in demand and rental values. Take-up improved strongly in 2010, largely as a result of increased demand from the financial sector. London saw the most dramatic rise in prime rents in Europe.”