From 2002 to 2007, West End had been the most expensive city in this world for rental of office spaces. In 2008, it lost out to other cities and slipped to the 5th place. But, 2009 saw the West End regain its hold as it emerged again as the most expensive office rental city in the world.
Last year saw recessionary tendencies in the market which led to flattening of the rents. Even when the office area prices were falling, desk space London topped the list partly because of the protection it received from pound.
DTZ Holdings Plc is convinced on basis of these figures that other cities in the world including Tokyo, Dubai, Paris and Hong Kong had much lesser office rents that West End. West End’s victory would probably continue for the next couple of years. Currently, a company needs to shell out almost £13,500 for each staff member if it wants a West End office space.
Global recession led to decrease in liquidity of enterprises which fired a large chuck of their staff to save money. This led to decrease in the need for office spaces and their prices went down. Singapore and some other cities saw an increase in the available office areas at the same time and were badly hurt. Tokyo managed to hold on with just 8% loss in office prices.
Major world centres including Hong Kong, Paris, Dubai and Midtown New York witnessed 20% loss in rentals on basis of the dollar. The other top five cities in the list of most expensive cities for office rentals were Geneva, Hong Kong, Washington, and Tokyo in order.
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