GCC PERFORMANCE
The report stated that South America and the Middle East & Africa region showed the best performance in terms of rents, recording rental falls of five percent respectively. In the notes for each country, it said that Dubai has a
‘vast oversupply of office space and as a result of falling demand, rental levels moved down over the year.’ It added that demand in Abu Dhabi also fell, and
rents dropped around seven percent over the year, as tenants ‘looked to renegotiate their existing leases’.
However, rental values in both Riyadh and Jeddah
stopped declining and started to stabilise towards year-end as the economic outlook improved. The principal Saudi Arabian office markets saw occupier demand slow noticeably as many companies post- poned or cancelled expansion plans. According to Cushman & Wakefield, the Doha
market is one of the more stable within the Middle East – despite the economic slowdown, rental values were only marginally down over the year. New development
of office space continued over the year, with only a small number of schemes postponed or cancelled. The Bahrain office market saw a slowdown in
activity and consequently a decline in rental values. However, the market started to pick up towards the end of 2009, with office fundamentals stabilising and this is expected to continue in 2010. The report concluded that the global outlook for
The largest prime office rental falls included all the of major Asia Pacific cities with Singapore, Hong Kong and Tokyo recording falls of 45 percent, 35 percent, and 21 percent respectively
2010 is more positive than the findings may suggest. ‘As some major economies return to growth, demand for office space from corporates is likely to once again increase and reduce the supply of space. Rental growth is already being recorded in some of the world’s leading office markets such as the City of London and Paris CBD, and rents globally are expected to reach their low point by the middle of the year. The second half of 2010 will therefore be one of recovery and cautious optimism from both landlords and occupiers.’
apr-may 2010
/
/ 29
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68