Dubai is second most expensive office market in the EMEA region

With the fallout of the global economic downturn now hitting leasing markets across the world, landlords are under increasing pressure and tenants are initiating negotiations on rents and lease terms, according to the latest reports by CB Richard Ellis.

The latest figures from CBRE’s Office MarketView (Q1 2009) show that the average office rent in Dubai is €995 per sq m per annum, the second highest market rate in Europe, Middle East and Africa (EMEA).

Unsurprisingly, London’s West End tops the list of the most expensive office rents at €1,019. The other cities that make up the top five are Moscow (3rd) at €906, Paris (4th) at €700 and St Petersburg (5th) at €657.

In terms of local currency, the average prime office rate in Dubai is Dhs450 sq ft/annum, down 18% year-on-year. Relative to the rest of its EMEA neighbours, its year-on-year loss has been somewhat subdued. St Petersburg has lost 36.8% year-on-year, with Moscow (29.4%), London City (28.5%), London West End (27.1%) and Oslo (26.7%) making up the top five rental declines.

Matthew Green, Associate Director of Research, CB Richard Ellis Middle East, said:

'Despite the much publicised downturn in the Dubai market, prime office rental rates remain comparatively high and second only to London’s West End. However with a significant portion of supply still to enter the market this year we are likely to see further rental reductions as landlords compete to secure tenants.'