Abu Dhabi offices among top rent falls in the world

Abu Dhabi has seen the fifth fastest declines in office rents over the past year, according to a new global report by research house CB Richard Ellis.

Rental values for commercial properties in the UAE capital have fallen nearly 39 percent, according to the study which compared prices for the third quarter of 2009 and the same period last year.

Dubai's office rents have dropped by 27.3 percent in the same period, CB Richard Ellis added, putting it 18th in the global list of 50 locations. The city with the biggest rental fall was Kiev where values have plunged 64 percent in 12 months.

The report said that the financial crisis had taken a toll on the world's office markets with many of the most expensive locations becoming less expensive amid a general reduction in office jobs.

Overall, Dubai was the eighth most expensive city in the list, with office rents averaging at $108.91 per sq ft per annum, it added.

This compared to the $184.85 being demanded for office space in London's West End, which topped the CB Richard Ellis list.

Abu Dhabi was ranked 14th with an average rent of $84.40 per sq ft.

Globally, two districts in Tokyo, Japan, Hong Kong and Moscow followed London's West End to complete the top five positions.

The report follows a similar study by broker Knight Frank earlier this week which found that about 40 percent of Dubai’s office space was lying empty after the emirate’s construction boom outpaced demand.

Empty office space totalled 10 million sq ft (929,030 sq m) in Dubai, the firm said in a note on Monday.

The vacancy rate for office space in the UAE capital Abu Dhabi is six percent, the broker said.

Last month, Jones Lang Lasalle said that demand for office space had increased over the past six months this year as businesses snapped up bargains.