By Staff writer
Knight Frank report reveals Dubai high-rise commercial rents are a sixth of the cost charged in Hong Kong
Rents in commercial towers in Dubai remained flat over the past six months, according to the latest Skyscraper Index by Knight Frank.
Dubai skyscraper rents showed zero growth in the six-month period to Q2 2016, remaining at $43.50 per sq ft per annum, or $468.79 per sq m per annum.
Rents in the emirate were ranked one of the cheapest in the 23 cities covered and were less than a sixth the cost of the world's most expensive in Hong Kong ($278.50), the report showed.
The bi-annual report, which examined the rental performance of commercial buildings over 30 storeys, showed that rents in Hong Kong’s skyscrapers are the highest in the world by some margin, and were followed by New York, where rents reached $158 per sq ft, Tokyo ($149.50 per sq ft) and London ($114 per sq ft) which retains its place in the top five of the Index.
Skyscrapers in Shanghai recorded the strongest rental growth in the first half of 2016, at 7.6 percent, followed by Sydney, where rents grew by 6.6 percent over the period, Hong Kong (5.9 percent) and Taipei (5.7 percent).
Knight Frank’s analysis showed that rents in skyscrapers in European cities were stable over the first half of the year.
Dana Salbak, associate partner, Knight Frank Dubai Research, said: “Over the first half of the year we have seen skyscrapers in Asia-Pacific outperform their counterparts in Europe and North America.
“Rents in Hong Kong’s skyscrapers remain the highest in the world, and with demand likely to outstrip supply for the foreseeable future we expect the city to retain its top position in the Index. Furthermore, the supply-demand dynamics in Hong Kong will continue to support rental growth in Shanghai’s skyscrapers, as many companies opt to relocate there.
“Shifts in the occupational markets in Sydney and Taipei have intensified demand for space in skyscrapers, and we expect both cities to perform strongly over the second half of the year.”