The London commercial property market is the forerunner in the country’s turnaround in tenant activity, with retail and office demand expanding at the fastest pace.

New research, contained within the Royal Institute of Chartered Surveyors (RICS) Commercial Property Survey, found that surveyors have reported a rise in enquiries and letting activity for the first time in two years.

The Central and Greater London office market has seen tenant demand rise for the second consecutive quarter at more than double the pace of the same period last year. Some 42% of surveyors questioned reported a rise in lettings activity compared to 18% in the previous quarter, the highest figure since early 2007, RICS claim.

“New enquiries to occupy business space have turned positive for the first time in five years, and enquiries have risen in unison across all three sectors,” states the survey.

“The results may provide the first signal that a strengthening in the global economy has filtered into multinational lettings activity, particularly in Central London where the veil of pessimism is slowly lifting,” added RICS Senior Economist, Oliver Gilmartin.

Across the entire country, the net balance for tenant demand has risen to 8%, up from the negative 11% shown in the previous quarter. However, market activity in the West Midlands has remained slow, with only the retail sector reporting positive changes.