If you’re looking for a cheap option for rent in among Dubai’s many office skyscraper buildings, then you are fresh out of luck. There simply aren’t any around. In fact, Dubai’s best high-rise commercial buildings charge the 18th most expensive rental amounts in the world.
Rents remain flat this year
According to a report from Knight Frank, which looks at the global skyscraper index, Dubai’s can expect to receive a rent of $44 per square foot. These figures remain unchanged over the first half of 2017, which must be a relief for the tenants if not the landlords.
Matthew Dadd, Partner – Commercial Agency for Knight Frank explains the flat rental gains for the first half of the year: “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.”
Most expensive in the world
While Dubai does well, the most expensive skyscrapers to rent in the world are in Hong King. Landlords routinely command $304 per square foot. In New York, landlords are getting $162, and in Tokyo $140.
Fifth on the list is San Francisco. The US city has seen rents rise to $117 per square foot. London is just behind with rents commanded of $110 per square foot. Given the negative forecasts surrounding London due to Brexit, their rents are particularly impressive. The City of London’s skyscrapers are most definitely not yet lying empty, which was the dire forecasting of many in the wake of the Brexit vote.
City with highest gains
Toronto is the city with the most impressive gains in rental for office towers. Their rent has risen 11.9% in the first half of 2017 to peak at $58 per square foot.
Back in Dubai, we can expect to see many more upscale skyscrapers emerging. These will cover residential and mixed-use as well as commercial and will appear all around the city.
Nakheel is expected to start selling its new Palm Towers soon, and the Shaikh Zayed Road will be home to new high quality vertical developments from Shuaa and wasl. As well as these, DMCC has confirmed a cluster of officer towers in Uptown Dubai.
About Samir Salya
Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing