In the year 2010 the most expensive office location in the world became London´s West End. On the other hand Paris won´t appear in the top five this year.
 

 Last year the fifth – London, jumped with its prices to the  top  of the scale and replaced so far the most plush Tokyo. It also hoped over Paris, Dubai or Hong-Kong. Paris and Dubai on the other way round moved to the sixth and eleventh place. Hong-Kong kept  the fourth place. The West End boom was caused by short but sharp correction of leases dated in 2008. That is against Paris and other top locations, which faced fall off lease prices in 2009.

DTZ analysts (DTZ = Global real estate adviser headquartered in London, employing over 10 000 people in 148 cities in 43 countries, operating in Europe, Middle East and Africa, Asia and the Americas) focused on tenancy development for bureau and office rentals. They looked at the lease prices plus utilities. They researched 116 administrative locations in 47 world countries.

In the top ten list lately appeared Zürich on the eighth place, Boston took the ninth and Frankfurt the tenth position. A big drop in tenancy pricing noted previously mentioned Paris and Dubai, but also Moscow. The Russian capital fell from eleventh to thirty-sixth position. That means, from the leaseholders perspective, much more affordable.

West End, 29. 1. 2010

The year 2013 outlook

DTZ specialists prognosis indicate increase of office-space leases (both leases and utilities) during the period of 2010 – 2013. The estimated evolution will answer to the economy view-point. Exactly the point connected to hiring new employees and demand for new spaces. 

DTZ estimation also implies that the biggest growth in upcoming four years will enter in Asian-Pacific Zone. Their economic expansion is exceeding Europe and United States. In this region, there are four from the five fastest growing markets in the world. (speaking from a view – cost per job opening) That is Hong-Kong, Canton and Bangalore. Hong-Kong is expected to became the most expensive Asian-Pacific Location.

The London´s West End will stay the most expensive location of the world in upcoming years. It will lead together with Tokyo,Hong-Kong, Washington D.C. and Paris. The DTZ analysts suppose, during the year 2010 – 2013, abrupt fall of Singapore, Madras and Glasgow.

 Sequence/ 2009                 City  

 1st                                          London / England

 2 nd                                        Tokyo / Japan

 3 rd                                         Washington D.C. / USA

 4 th                                         Hong-Kong / China

 5 th                                         Geneva / Switzerland

 6 th                                         Paris / France

 7 th                                         New York / USA

 8 th                                         Zürich / Switzerland

 9 th                                         Boston / USA

 10 th                                       Frankfurt / Germany