Prime office rents increased in all of the major global business centres last year, with some seeing rents jump over 20%, according to property consultants CB Richard Ellis (CBRE).
CBRE said the increase in rents reflects more demand for office space around the globe, with single digit vacancy rates in all markets.
In Dublin, rents rose by almost 10% last year, and research last week from CBRE in Dublin suggests prime rents in the capital will hit €700 per sq metre this year on higher demand.
In Europe, Madrid and London experienced the most significant rises last year, as prime office rent went up 25% and 22% in the year respectively.
West End rents in London rose to €1,558 per sq m per annum - the highest in the world, while in Madrid prime office space rent reached €408.
At year end, vacancies in London and Madrid had fallen to 4.3% and 7.8%, respectively. Paris rents rose by over 9% during the year, with vacancy of just 5.2% by the end of 2006.
New York registered an 18% jump to an average of €446 per sq m per annum, as vacancy levels fell to 5%.
Asking rents rose 30% in Hong Kong, the strongest increase of the 10 markets, to an average of €619 per sq m per annum, as vacancy fell to 3.8%.
Tokyo's negligible vacancy increased minimally (0.3 points) to 1.4%. Tokyo rents posted the third sharpest rise, jumping 24% to €1,299.
