• Strong performance of the European economy and higher business confidence resulted an increase of total take-up in all markets in 2006 compared to the year before, by 16% on average.
  Vacancy rates have dropped slightly further in the study area and they currently average at around 9.0%. The issue of second-hand accommodation remains and may offer some
  redevelopment opportunities as demand strengthens.
• Prime CBD rental growth across the study area is gaining pace reaching the late pre-downswing level noted in the second half of 2001. Almost all markets have entered an upswing phase and the average annual prime rental growth for Q1 2007 is at 9.2% compared to 6.7% in our previous survey in Q3 2006.
• The outlook for rents is positive, as demand and supply are becoming more balanced. However, this is a medium term view as new developments will commence within 2007 and will be delivered onto the markets 18 to 24 months later.
• Although the economic outlook for 2007 is quite positive, our economists (Experian) predict a modest slowdown due to the effects of the US economic slowdown and of the tightening of monetary policy in Europe. The good news is that employment growth is forecast to remain strong.
• Prime yields have compressed further, down to an average of 5.1% compared to 5.3% in our previous survey. We believe that yields may have bottomed out in some markets and return expectations should stem from active asset management rather than capital appreciation.

Contact Information
Eri Mitsostergiou
+30 210 6996311
emitso@savills.com