Chartered surveyors in London are seeing one of the fastest commercial property rent rises for 15 years
Demand for commercial property in London rose for the 10th consecutive quarter while available space in the capital fell for the ninth successive period, according to the latest RICS Commercial Market Survey.
As a result, rents are expected to rise at the second fastest pace since the survey began in 1998 with 71% more respondents in London forecasting higher, rather than lower, rent rates.
Office space rental expectations remain most buoyant, with 79% more chartered surveyors expecting to see a rise rather than fall.
It is a similar story in the investment market within the capital as well, with inquiries still rising. Some 70% more chartered surveyors report an increase in prospective investors over the quarter while availability of space continues to decline across all areas in London.
There is also evidence of more interest from overseas buyers across the UK, with 36% more respondents seeing an increase in inquiries from overseas investors.
RICS chief economist Simon Rubinsohn said: “The results of the latest survey suggest the price of commercial real estate will continue to move higher over the next 12 months and quite possibly by another 10%.
“The feedback we are getting tells us that the economic expansion is continuing to broaden out with tenant demand and, just as significantly, investor interest, rising in all areas.”