CBRE: London still most expensive office market

London’s West End is still the world’s most expensive office market, while rapidly rising Moscow climbed to second place, according to the latest semi-annual Global Market Rents survey by property adviser CB Richard Ellis. The report tracks world markets with the highest and fastest-growing occupancy costs for the 12 months to end-March. Tokyo’s Inner Central Five Wards, Mumbai’s Nariman Point and Tokyo’s Outer Central Five Wards rounded out the top five most expensive markets.

'Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation,' said Raymond Torto, CBRE’s global chief economist. 'These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies. In some of these emerging markets, Class A office space is seriously lacking.'

Ho Chi Minh City had the fastest-growing occupancy costs during this period, up 94%. Moscow was not far behind at 93%, followed by Singapore at 86%. Asia Pacific had 11 markets among the 50 with the fastest-growing occupancy costs. Perth, Australia, joined the top 50 most expensive, coming in at number 41. Overall, EMEA (Europe, Middle East and Africa) countries dominated the list of markets with the fastest-growing occupancy costs, accounting for five of the top 10 and 19 of the top 50 markets. Worldwide, 88% of the 173 office markets monitored posted higher occupancy costs.

Among the most expensive markets, Singapore and Dubai were newcomers to the top 10, coming in at 9th and 10th respectively. Midtown Manhattan was still the priciest market in North America, and ranked number 13 worldwide. Three other North American cities were among the world’s top 50 most expensive office markets, with Calgary Central Business District coming in 42nd , Toronto 47th and suburban Los Angeles at 48th.

Top Ten Most Expensive Markets
(In US$ per sq. ft. per annum)
1. London (West End), England
2. Moscow, Russia
4. Mumbai, India
5. Tokyo (Outer Central), Japan
6. London (City), England
7. New Delhi, India
8. Paris, France
9. Singapore
10. Dubai, United Arab Emirates

Top Ten Markets with Fastest Growing Occupancy costs
(In local currency & measure)

1. Ho Chi Minh City, Vietnam
2. Moscow, Russia
3. Singapore
4. Nicosia, Cyprus*
5. Oslo, Norway
6. Tel Aviv, Israel
7. Dubai, United Arab Emirates
8. Mumbai, India
9. Manila, Philippines
10. Perth, Australia