Rents in Dubai skyscrapers cheaper than London, Mumbai
Rentals in office towers stands at $43.50 per square feet
By Parag Deulgaonkar emirates 24/7 news
Published Thursday, April 21, 2016
Rents in Dubai’s skyscrapers are almost six and three times cheaper than Hong Kong and London, according to Knight Frank’s Skyscraper Index.
The report, which examines the rental performance of commercial buildings over 30 storeys across the world, shows that rents in skyscrapers in the emirate stand at $43.50 per square feet compared to $263.25 square feet in Hong Kong and $126 square feet in London.
Emporis data reveals Dubai has 2,281 buildings of which 1317 exist, 405 planned and 321 under construction. Overall, there are 1,229 high-rises and 518 skyscrapers. Burj Khalifa, a mixed-use tower (offices, hotel and residential), is the world’s tallest tower. The Council on Tall Buildings and Urban Habitat data reveals almost 31 skyscrapers along the Sheikh Zayed Road.
Global consultancy JLL’s first quarter 2016 report states that Dubai’s office market continues to be two tiered with rents in central business district and prime areas remaining stable. This is due to the popularity and strong demand for these properties.
Office supply increased by approximately 137,800 square metres in 2015, while an additional 269,000 and 368,000 square metres of gross leasable area is scheduled to be delivered in 2016 and 2017, respectively, it added.
The Knight Frank report reveals rents in London’s skyscrapers are rising faster than those in any other global city. Rents rose 9.7 per cent during the second half 2015. This far outstripped the growth in rents seen in other global cities, with rents in skyscrapers in San Francisco and Hong Kong rising 4.76 per cent and 3 per cent respectively over the same period.
Singapore was the only global city where skyscraper rents declined by 4.75 per cent due to oversupply and diminishing occupier confidence as a result of the slowdown in the Chinese economy.
New York retains its second position, where skyscraper rents are currently $155 per square feet, with Tokyo third at $129 per square feet.
Ally McDade, Associate, Knight Frank Research team: “For the second time in twelve months, London is the fastest growing office tower market in the world due to its diversity of occupier demand and constrained supply.
“In the US, the rapid expansion of the tech sector is underpinning rental growth for towers in cities like San Francisco and Boston. Interestingly, Mumbai’s emergence as a top performer has benefited from growth in tech, as it surpassed financial and business services as the top occupier of office space in the second half of 2015.”