The JLL research also highlights wider barriers to the emergence of a common European property market. One of the main reasons the 12 euro zone governments agreed to adopt the currency is because it will bring price transparency. For example, consumers will know immediately if cars are cheaper in Belgium than in France and will change their shopping habits accordingly, helping to drive inflation out of the economic system. But there is no uniform way of quoting property costs. In Germany and Spain, rents are quoted in € per sq m per month, while in France, Belgium, Italy and the Netherlands they are quoted in € per sq m per year. JLL believes a uniform system will emerge, but it is anyone's guess which of the two conventions will be adopted.

And a further complication is the fact that three important EU markets--Denmark, Sweden and the UK--have opted out of the process. In all three the adoption of the euro is seen as the biggest political issue facing the governments, but opinion polls are already moving in favour of membership. And as voters become familiar with the new currency on their business and leisure trips it becomes increasingly likely that all three will eventually join.

'In the UK it is still common to hear talk of "pounds per square foot". It will take time, but one of the most significant impacts of the events of 1 January 2002 could be that it will ultimately sound the death knell for the "pounds per square foot" tendency in the London market,' say the JLL researchers. 'We will know the UK is ready to sign up for the single currency when the leasing agents in the City are talking in euros per square metre.'