London office rental values will rise further in 2010 according to Capital Economics, however it expects that the IPD all-property average will fall by -3%, significantly less than the -8% decline in 2009.

Although rental values fell in January 2010, it was only by -0.2%, which was the lowest figure since September 2008. Office take-ups did improve in central London as despite the overall fall, the City and West End sub-sectors saw increases of +0.2% and +0.3% respectively.

Retail rental values also decreased in January, however the falls slowed from -0.5% in December 2009 to -0.3%.

Gross domestic product (GDP) meanwhile is expected to grow by only +1% in 2010, mainly due to a subdued economy as public finances are in a poor state and retail sales have declined in January.