The market for office space to rent in the West End of London “remained buoyant” during the month of July as average rent values increased by 0.4 percent, according to a new report on the subject.
The Investment Property Databank (IPD) produces regular reports on conditions within office space markets across London with the West End a continually strong performer. The research company’s UK Monthly Property Index reflected positive news for the West End but across the capital in the City of London rental prices were found to be falling.
During the past three years, the City has seen its average rents rise by more than a third but that same figure fell in both June and July of this year, according to IPD, whose index points to the West End as being the UK’s only consistently improving office space market.
Looking more broadly at the British property markets and from an investor’s point of view, the IPD noted that “total returns for UK property rose slightly in July, to 0.2 per cent”.
“Falling values, though difficult for a market struggling with financing, do mean higher income yields, if investors are prudent in their asset selection,” said Phil Tily, managing director of the IPD in the UK and Ireland.
A report from the real estate advisory giant CB Richard Ellis back in July put Hong Kong firmly in the lead as the world’s most expensive place in which to find office space to rent but the West End of London was not all that far behind in second place ahead of Tokyo in third.
Meanwhile, the property development firm British Land recently revealed that four of its tenants at offices across its Broadgate Estate in the City of London had committed to expanding each of their respective presences at the site.