Prime rents are set to broadly stabilise in Europe this year with centres such as Berlin, London, Stockholm and Warsaw expected to be the top performers in terms of prime rental growth, according to a new research report issued by global consultant Colliers International.

'Based on an assumption of steady economic growth, we expect prime rents to be broadly stable over most of the 25 major centres in 2011,' Colliers said.

Despite sovereign debt concerns dominating the front pages in 2010, Europe experienced a resumption of economic growth during the year, especially in Germany. Improved economic performance did not, however, transfer into notable increases in occupational demand. Of the 25 major office centres examined in the report, a number were still reporting prime rental falls in the latter half of the year. London (City and West End) and Paris (CBD) were the obvious exceptions, with both seeing strong prime rental growth in 2010.

'London has shown true resilience in the face of the financial crisis and demonstrated its global credentials,' said Mark McAlister, Colliers' head of City Agency. 'Businesses and investors continue to see it as a comparatively stable environment in which to house operations and safeguard capital. As such take-up of offices has improved in 2010, with positive rental growth witnessed in the City and West End.'

On the investment side, most of the major centres witnessed yield compression over 2010 as investors priced in healthier long-term expectations - the threat of sovereign debt defaults seemingly retreating in the latter half of the year.