The average rate of rental growth fell from 13% per annum at the end of March 2001 to 9% by the end of September. But some locations have bucked the trend. Frankfurt saw rents climb 33% to DM 1,4440 per sq m ($62 per sf) per annum in the year to September 2001. Athens saw 25.9% growth over the period and the City of London 25%.

FPD Savills' European Research Analyst Eri Mitsostergiou said: 'The events of 11 September have exacerbated the gloomy economic outlook and shaken the global business community. We believe that rental growth will subside in the short term and it might even go negative in some cities.'

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