Prime office rents in the three key office markets of central Europe --Budapest, Prague and Warsaw--stabilised during 2001, after several consecutive years of falls. A new report from Jones Lang Lasalle says supply and demand care now in balance. And in Moscow, prime rents grew by more than 4% during 2001, reflecting strong economic growth and falling unemployment.
Take-up during 2001 across the four markets averaged 13% of end-year stock, down on 2000 but still well above the average level of 5%in western Europe. JLL claims supply has peaked across the region, with completions in 2001 some 25% lower than in 2000. Although completions are expected to increase in 2002, construction activity remain below the levels seen between 1998 and 2000.
Vacancy rates are expected to continue their downward trend, especially in Moscow, where the vacancy rate has already halved to 4% over the past 12 months.
(source: Jones Lang LaSalle)