Cost of London office space set to soar amid supply shortages

Office space is in short supply, putting upward pressure on prices, a new survey of property surveyors reveals today.

 

In central London, 60 per cent more surveyors are seeing a rise rather than fall in demand across all areas, the research undertaken by the Royal Institution of Chartered Surveyors (Rics) said.

 

As a result, rents are expected to rise at the second fastest pace since the survey began in 1998, with 71 per cent more respondents in London forecasting higher rent rates going forward.

 

Offices were the most buoyant sector of the London market, with 79 per cent more chartered surveyors expecting to see an increase rather than a drop.

 

“The results of the latest survey suggest the price of commercial real estate will continue to move higher over the next twelve months and quite possibly by another ten per cent,” said Rics chief economist Simon Rubinsohn.