In Europe, Madrid and London experienced the most significant rises. Madrid recorded a 25% increase during 2006 - the second-highest of the top 10 global markets - while London posted a 22% increase.

In Dublin, rents rose by almost 10% in 2006 and are expected to hit Euro700 per sq m per annum over 2007.

The increase reflects tightening office market conditions around the globe. Vacancy rates declined across the board and are currently in single digits in all 10 markets.

In the West End of London - the most expensive office market in the world - the prime rent rose to Stg£97.50 per sq ft (Euro1,558 per sq m), while top rents in Madrid reached Euro408 per sq m. 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.

In North America, New York registered an 18% jump in asking rent - its largest yearover-year increase since 2000 - to an average of $54.62 per sq ft (Euro446 ps m), as market-wide vacancy fell two to 5%.

Asking rents rose 30% in Hong Kong, the strongest increase of the 10 markets, to an average of HK$591.60 ps ft (Euro619 ps m), as vacancy receded to 3.8% from 4.8% at yearend 2005. Tokyo's negligible vacancy increased minimally to 1.4%. Tokyo rents posted the third sharpest rise, jumping 24% to JPY18,971 ps ft (Euro1,299 psm). At 8%, Sydney's year-end 2006 vacancy dropped 1.6 points and continued to stay in single digits, while rent rose 8% to AUS$629.28 (Euro367) per sq m.

"Although the European economy is still lagging behind most of the rest of the world, the growth in 2006 was sufficient to generate increases in many markets" says Nick Axford, Head of EMEA Research and Consulting at CBRE. "In part this is due to the low levels of vacancy in the prime locations, but we are also starting to see the results of recent growth feeding into more widespread increases in office demand."