London 'leading property revival', says DTZ

Property adviser DTZ today said London was leading the recovery in the market.

The company, which operates in 148 cities, reported improving levels of activity in the capital as well as in Paris and China.

It said investors were returning to the market to buy cut-price buildings and firms were also looking for new space to rent.

DTZ recently advised Macquarie Bank on taking 217,000 square feet of space at Ropemaker Place in the City.

Chief executive Paul Idzik said: "It is encouraging to report that in certain markets we see signs of growing confidence and activity.

"However, while there are signs of recovery in some areas of our industry, it is too early to determine to what extend this recovery will be sustained, particularly while wide economic uncertainty remains. We remain cautious."

Idzik, a former banker at Barclays, said he expected profits for the year to be in line with City expectations as the firm makes £70 million of cost-savings, from job losses and other measures.

"The group remains on track to meet market expectations for the full year and is well placed to meet the challenges and opportunities that our markets will present in 2010 and beyond," he said.