London Commercial Property Insurance Holders are Optimistic

Commercial property insurance policyholders in the West End and City areas of London should see strong rental growth this year.

The report suggested that the London market would outperform other European cities, with prime office rents in Paris expected to be stable and Brussels suffering from over oversupply.

Warsaw and Prague have seen vacancy rates rise by 7.9 per cent and 11.9 per cent respectively, the figures showed.

Kelvin Davidson, property economist at Capital Economics, said that there is optimism towards the performance of the UK market this year.

"The recent data has been a lot stronger," he commented.

France is another sector which could enjoy positive growth this year, according to Fergus Hicks, also a property economist at Capital Economics.

"Certainly it seems that France led the investment recovery in terms of Europe after the UK last year, so it is one of the stronger investment markets this year," he said.