Friday, December 04, 2009

Dubai among top 10 expensive places to rent office space

Despite the drop in property prices in Dubai, the emirate is the eighth most expensive place to rent office space in the world, reveals the latest report by CB Richard Ellis on office occupancy.

The office rents in Dubai have dipped by 27.3 percent during the past year, but, as the fall is universal, it remains among the top 10 of the priciest places to have an office.

With office space now costing $108.91 per square foot a year on an average, Dubai is however, still, way behind the West End of London, which attracts rents at $184.85. But, it is still ahead of London City market which is the ninth place globally and is well ahead of its neighbour Abu Dhabi, where rents have fallen by a huge 38.6 percent touching $84.4.

The best performing market was Aberdeen in Scotland, which suffered a 12-month decline of 12.3percent, touching $65.62.

The report said that the financial crisis has made an impact on the world's office markets and the US dollar, has been particularly weak in 2009. Europe, Middle East and Africa continue to have the largest number of markets and are on the top 50 list while London's West End is still the world's most expensive market. Other markets in the region ranking high on the list are Paris, Moscow, Dubai and London City.

Meanwhile, the real estate broker Knight Frank LLP said that 40 percent of Dubai's office space is currently empty after the emirate's construction pace surpassed demand, Bloomberg had reported.

Vacant office space in Dubai totals to 10mn square feet at present. However, if developers meet the current completion dates, total office space will double to touch six million square meters by end of 2011, reported research by broker Colliers International, which also placed vacancy rate at 40 percent.

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