London is leading an office value pricing correction in Europe as prices adjust at the fastest pace ever recorded, according to the latest research from Savills.

The consultancy reports that seven of the core European office markets have moved into “fair value” territory for the first time this cycle, based on current pricing against the five-year average risk premiums. Fair pricing indicates that the fundamental yield is within 10 percent of market yield. Savills compares the fundamental yield relative to current market pricing across 22 European cities and Dubai.

The seven cities that are now “fair value” are London City, Amsterdam, Hamburg, Paris La Défense, Frankfurt, Oslo and Berlin, where Savills reports a return of investor interest following some of the weakest investment volumes in several years. London City appears to have fully corrected, followed by Hamburg (–3 percent) and Amsterdam (–5 percent). As these three locations appear the closest to