IT sector to revive London's commercial property market

The technology sector is set to drive the recovery in office demand in the west of London, which could see a rise in demand for hosted telephony solutions.

At its 19th annual M25 Office Market Research Breakfast, property company Knight Frank said that it expects tech firms will make up 50 per cent of office demand in the Thames Valley region in the next year.

In the M25 area, first quarter of 2011 take-up of 452,000 sq ft represented a 15 per cent increase the same period last year, but sits 30 per cent beneath the ten year quarterly average.

Technology companies are forecast to provide a key source of expansion as and new entrants come to the market, such as Huwawei and HTC.

With many companies, including smaller businesses now turning to VoIP solutions as a method of improving productivity as well as cutting costs, the influx of IT businesses could see an increase in VoIP traffic in the area.

Emma Goodford, head of south-east offices, said: "ICT is really on the charge again and will drive forward the recovery of the South East market, focussing on the Thames Valley area."

Knight Frank foresees a dramatic growth in businesses involved in wireless communication.