Dubai skyscrapers are more affordable than those in other cities such as London, New York, Hong Kong and Tokyo, according to new research.
Knight Frank’s latest Skyscraper Index shows that rents in skyscrapers in Dubai remained unchanged at $43.5 per square foot (/sq ft) in the second half of 2015, while rents for equivalent buildings in many other large, international cities saw increases of as much as nine percent.
The real estate consultancy analysed rental performance of commercial buildings over 30 storeys high in 21 cities across the world.
Rents in skyscrapers in London rose 9.7 percent to $126/sq ft in the second half of 2015 when compared to the previous six months.
San Francisco and Hong Kong saw rental increases of 4.76 percent to $110/sq ft and 3.03 percent to $263.25/sq ft respectively, while Mumbai and Taipei saw rental increases for skyscrapers rise 3.02 percent to $51.54/sq ft and 2.94 percent to $35.75/sq ft.
But rents for Dubai skyscrapers remained unchanged at $43.5/sq ft over the same period, the research found.
Rents in London skyscrapers are rising faster than those in any other global city, the research noted, but rents in Hong Kong’s skyscrapers continue to be the highest in the world by some margin. New York retains its second position, where skyscraper rents are currently $155/sq ft, with Tokyo third [$129/sq ft].
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, rapid expansion of the tech sector is underpinning rental growth for towers in cities such as 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.”
Dana Salbak, associate partner, research, at Knight Frank, added: “The growth of the commercial sector has remained relatively subdued over the past 12-18 months, which is why asking rents for some of the tallest towers in Dubai have remained flat.”
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