Abu Dhabi And Dubai Lose Rent Positions
Source: http://www.arabianbusiness.com
#abudhabi #dubai #realestate #economy
As reported by Arabian business, Prime office rents in the Middle East have fallen off a list of the world's top ten most expensive locations, according to real estate consultancy Knight Frank. Commercial rents in Abu Dhabi and Dubai, which were ranked the world's sixth and seventh priciest in 2010, have failed to make the top ten this year amid oversupply and falling rates.
"The high levels of development activity in recent years have left many of these locations with an oversupply of office space, forcing landlords to reduce rents further to attract tenants. Prime office rents fell by 10-20 percent during 2010 in Dubai and Abu Dhabi, and are likely to fall further in 2011.," analysts said.
A five-year property boom in Dubai collapsed at the end of 2008 amid the global financial crisis, halving real estate prices. In neighboring Abu Dhabi, property prices fell around 45 percent. In Dubai's tax-free business hub, DIFC, rents have fallen 50 percent from their 2008-peak while approximately 200,000 square meter of office space is expected to be delivered by third party developers over the next 18 to 24 months, said Knight Frank.
London's West End takes the top spot for the most expensive office rents in the world, up from second in 2010. Tokyo, Japan has dropped one spot this year, followed by Hong Kong and Moscow, said Knight Frank.
"The high levels of development activity in recent years have left many of these locations with an oversupply of office space, forcing landlords to reduce rents further to attract tenants. Prime office rents fell by 10-20 percent during 2010 in Dubai and Abu Dhabi, and are likely to fall further in 2011.," analysts said.
A five-year property boom in Dubai collapsed at the end of 2008 amid the global financial crisis, halving real estate prices. In neighboring Abu Dhabi, property prices fell around 45 percent. In Dubai's tax-free business hub, DIFC, rents have fallen 50 percent from their 2008-peak while approximately 200,000 square meter of office space is expected to be delivered by third party developers over the next 18 to 24 months, said Knight Frank.
London's West End takes the top spot for the most expensive office rents in the world, up from second in 2010. Tokyo, Japan has dropped one spot this year, followed by Hong Kong and Moscow, said Knight Frank.
