HK most expensive for skyscraper rents, Dubai sixth

Wednesday, 4 October 2017 00:00 - - {{hitsCtrl.values.hits}}

Dubai, which continues to provide an attractive real estate and business operating environment, offers the sixth most competitive global skyscraper rents averaging at $44 per sq ft, according to a report by property expert Knight Frank.

Globally, Hong Kong’s skyscrapers continue to command, by some margin, the highest rents in the world at $304 per sq ft, followed by New York (US) at $162 per sq ft and Tokyo (Japan) at $140 respectively, said the report.

San Francisco, where rents have risen to $117 per sq ft, completes the top five, ahead of London which registers at $110 per sq ft, stated property expert Knight Frank in its report, which analyses the rental performance of commercial buildings over 30 storeys.

With rental rates on an average at $44 per sq ft, Dubai has been placed at the 18th spot in Knight Frank’s global rankings.

The other top cities on the Knight Frank skyscrapers list are: San Francisco in the fourth place with average rental rates of $117 followed by London ($110); Sydney ($107); Boston ($77); Shanghai ($67); Singapore ($66); Beijing ($66); Chicago ($62); Paris ($58); Toronto ($58); Melbourne ($56); Mumbai ($56); Frankfurt ($54); Los Angeles ($45); Taipei ($41); Madrid ($39); Manila ($33); Seoul ($30) and Kuala Lumpur ($23).

On the upcoming big players, the property expert said Toronto’s (Canada) skyscrapers are experiencing the highest rental growth, rising 11.9% in the first half of the year to $58 per sq ft. In comparison, rental rates remained flat in Dubai over the same time period (0%).

Matthew Dadd, a partner for commercial agency at Knight Frank said: “Given the range of striking skyscrapers which Dubai has to offer we do not see a premium paid for higher floors in skyscrapers.”

“Occupiers’ priorities are focused on the efficiency of the floor plates as well as the amenities, vertical transportation and location of the building,” he added.