Istanbul records biggest increases in office rent
Posted by meb at February 20th, 2008
Turkey accounts for the top three locations with the highest annual growth in office rents according to Office Space Across the World 2008, a global report released this month by real estate services firm Cushman & Wakefield.
On average, the rents in the world’s 10 most expensive office locations rose by 40 percent. The highest increase was in Istanbul’s Levent “ the most expensive district of the country”.
In the 203 cities with the highest rent increase rate, Turkey’s Istanbul and İzmir topped the list, with office space rents rising by 95 percent in Istanbul’s Levent district, 87 percent in Istanbul’s Zincirlikuyu district and 80 percent in İzmir. An 81 percent increase was recorded in Oslo, followed by Singapore, Moscow, Dubai, Mumbai, Rio de Janeiro and Brisbane.
“We are seeing a significant shortage of quality office space across Turkey’s main business locations and this is not expected to change in the next two or three years,” said Rahsan Cebe, managing director of Cushman & Wakefield’s Alliance Partner in Turkey. “Demand, meanwhile, is being spurred by international as well as local companies as they expand in this relatively untapped market with a population of 70 million and a fast-growing economy.”
In this year’s ranking, London still has the most expensive office occupancy costs in the world: One square meter of prime space in London’s West End is valued at 2,277 euros a year, or $312 per square foot, with rents up 30 percent last year in local currency terms. In second place, Hong Kong’s office space rents increased by 40 percent last year in local currency terms to reach 1,745 euros per square meter. However, the increase in office space rents was a global trend with only 20 percent of the rents remaining stable and 1 percent decreasing, according to the report. The average increase internationally was about 14 percent in 2007, up from 10 percent in the previous year.
Source: Turkish Daily News
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