Weighted quarterly office rent growth across Europe reached a six-year high of 0.8% in Q1 2018, according to a recent study by Cushman & Wakefield. The growth was mainly driven by continued positive performance of the German, Nordic (Denmark, Finland, Norway and Sweden) and Semi-core (Ireland, Italy, Portugal and Spain) markets. “The last four quarters have seen positive growth in at least 15 out of the 47 monitored office markets, providing clear signs of a positive momentum in leasing markets,” the company said in the report.
Office rents in the CEE region remained flat in the first quarter of this year, but they grew by 1.2% y/y in the period and are predicted to rise further in the near future. In Poland, Cushman & Wakefield looked at Warsaw’s CBD where office rents have remained stable in recent quarters. The company expects an upward pressure on the current rental levels there in the coming quarters.
“The Polish real estate market continues its extraordinary growth, driven by strong tenant demand dynamics in the office and logistics sectors, as well as a solid performance of dominant retail schemes in spite of the recently introduced Sunday trading ban. 2018 promises rental growth in several core logistics hubs in Poland and we do also expect to see office rental growth in specific micro-locations within Warsaw’s CBD,” commented Soren Rodian Olsen, partner, capital markets group, at Cushman & Wakefield Poland.