There is evidence that occupiers from the high tech sector, particularly telecoms companies, are scaling back on plans to acquire further space but this has only had a limited impact so far. For example in Stockholm, where high tech companies have accounted for a particularly large proportion of demand, a number of requirements have been put on hold and rental growth is expected to slow in the next few months.
Italy saw the strongest rental growth during the year to March 2001, and in Rome a shortage of prime space caused prime rents to jump by a third. Milan too has seen 11% rental growth in the first quarter of 2001 alone.
However, CB Hillier Parker says that over the EMEA region as a whole rental growth is stabilising.
Vacancy rates are at record lows in many cities. Munich, Copenhagen, Amsterdam, Barcelona and Lisbon all report voids of less than 3 per cent of stock.
Michael Haddock, Head of EMEA Markets Research at CB Hillier Parker, said: 'Looking forward, it is unlikely that the property market in the EMEA region will escape without any negative impact in the medium term as a result of the US slowdown. However, vacancy rates are very low in many cities, especially in the Eurozone, and so the downside of a fall in demand from occupiers is limited.'
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