Demand for offices to rent in Cardiff and the rest of Wales increased over the first quarter of 2011, according to a survey from the Royal Institution of Chartered Surveyors (Rics).
However, this was dampened by an increase in floor space, the Western Mail reports.
A total of 13 per cent more Welsh surveyors reported rises rather than falls in commercial property demand, but 15 per cent more observed an increase in available floor space. Office space showed the greatest increases in supply.
This means that average rent expectations fell for the 14th consecutive quarter, with falls rather than rises expected by 17 per cent more surveyors. This generally reflects national trends.
In the Rics report, member of Cardiff chartered surveyors Stephenson and Alexander Peter Graham described the market as "still tough and we expect a tough 12 months ahead."
Christina Hirst, acting director of Rics Wales, said to the news source that the survey's results were encouraging, but she expects the imbalance between supply and demand to continue to affect rent expectations.
