DUBAI // Dubai is the second most expensive office market in the Europe, Middle East and Africa (EMEA) region, but rents are expected to fall further as more supply hits the market, CB Richard Ellis said on Tuesday. Average office rent in the emirate is ?995 ($1,384) per square metre per annum while rents in London's West End are the highest at 1,019 Euros, the real estate services firms said in a report.
"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," said Matthew Green, associate director of research. The average prime office rate in Dubai has fallen 18 per cent year-on-year as a result of weakening demand due to the global financial crisis, the report said. In Abu Dhabi, occupiers of older office buildings are withdrawing from commitments to move into premium office space due to economic uncertainties.
In Bahrain, demand from the banking sector is likely to have weakened, affecting demand for office space, it added. Moscow is the third most expensive office market, Paris fourth and St Petersburg fifth, the report said. Rents in St Petersburg have fallen 36.8 percent year-on-year, Moscow 29.4 percent, London City 28.5 per cent, London West End 27.1 per cent and Oslo 26.7 per cent. *Reuters