Dubai has one of the world’s highest office rent prices. That was discovered by the latest “Office Space Around the World” report published by Cushman & Wakefield. According to it, office rents in Dubai are equal to those in Brussels and Copenhagen altogether.
The report makes an analysis of the 2013 global office market. In addition, it predicts and discusses the trends in the industry for 2014. The study mainly focuses on occupancy costs, as well as on prime office rental performances around the world.
What the report found was that last year, global office rents have increased by 3%. It explains that this upward tendency was witnessed for the third year in a row. Also, the study states that the growth registered across the markets was rather slow and not much different compared to previous years. However, the Middle East and Africa saw a big spike in office rents. As a result, prime rents there have jumped by 14% on the average. In fact, these two regions witnessed the biggest rental expansion in 2013.
Unsurprisingly, Dubai was found to be the most expensive location in the Middle East and Africa. Moreover, the report predicts that office rent prices in the city will continue to grow in 2014. The highest office rents in Dubai are registered in Dubai International Financial Centre. There, prices can sometimes reach to AED 2.91 million per year or even higher.
Qatar’s office rent prices have also increased. Prime office prices jumped by 10% there. However, the report has found that the growth was even more impressive in South Africa, where prices went north by an average of 30%.
The most expensive global office market was London, particularly West End. Office rents in the capital of the U.K. are traditionally high. Still, in 2013, increasing demand and decreasing supply pushed prices even higher. Like last year, Hong Kong preserves its second place. Nevertheless, the gap between London and Hong Kong has never been so obvious. New Delhi’s Connaught Place saw one of the biggest falls in the top 20. According to the report, that was due to appreciation in the US Dollar and the Euro as opposed to the Indian Rupee.
Most expensive locations:
- London, U.K.
- Hong Kong, Hong Kong
- Moscow, Russia
- Beijing, China
- Tokyo, Japan
- New York, U.S.
- Rio de Janeiro, Brazil
- New Delhi, India
- Paris, France –
- Sydney, Australia
- Singapore, Singapore
- Luxembourg, Luxembourg
- Oslo, Norway
- Dubai, UAE
- Geneva, Switzerland
- Almaty, Kazakhstan
- Doha, Qatar
- Stockholm, Sweden
- Istanbul, Turkey
- Milan, Italy
The experts behind the study have discovered that in 2013, office occupiers were more caution that the usual. The reason was high occupancy costs. The demand for high-quality office space in attractive areas increased greatly last year. That could be one of the factors that triggered the higher prime rent prices.
