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15. Februar 2012 
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Positive growth seen in Moscow, falls witnessed in the Middle East
According to Colliers International’s latest EMEA office rents map, most of the major EMEA office markets monitored recorded no changes in rental levels during the last six months of 2011.
The most notable rise in rents in the second half of the year was reported in Moscow, with Class A rents rising 17%. The Russian capital also turned out to be the best performer on an annual basis reporting positive rental growth of 30% amongst Class A properties. Among Western European markets, Manchester in the UK reported a notable rise in rents of 7%.
The most significant falls were recorded in the Middle East, with Abu Dhabi experiencing a drop of 11% - increasing vacancy rates a key factor. Prime offices in Cairo also saw declines of around 5%, political unrest in Egypt certainly playing a role in this, with occupiers nervous regarding the outlook for the country.
As was the case in the first six months of 2011, prime yields across most monitored office markets reported flat yields or only marginal shifts in the second half of the year.
Two of the key Middle East markets, Dubai and Riyadh, reported inward yield shifts of -70bps and -50bps respectively. A marginal compression of yields took place in the main centres in Central and Eastern Europe – Warsaw (-25bps) and Prague (-30bps) - as investors sought, and continue to seek, attractive yields in strong markets outside of the traditional core. Prime Dublin office yields also compressed marginally (-25bps), which Colliers believes is due to the positive impact on investor sentiment of the government pulling out of its retrospective interference in upward-only reviews – although actual transactional evidence remains thin on the ground.
Marginal increases (25bps) were recorded in a couple of the key UK markets, including Bristol and Manchester, as well as in Bucharest, Zagreb and Athens.
Looking forward, Class A rents in a majority of EMEA markets are expected to remain steady over the next 12 months. Further falls are expected to take place in the Middle East and other weak markets such as Athens and Lisbon. Major centres such as London, Moscow, Munich and Frankfurt are expected to see some rental growth at the top end. The vast majority of centres are expected to see prime yields continue to hover around current levels.
The Colliers International EMEA Office Rent Map includes Class A rents, yields, vacancy rates and construction levels in the major markets across the region.
The most notable rise in rents in the second half of the year was reported in Moscow, with Class A rents rising 17%. The Russian capital also turned out to be the best performer on an annual basis reporting positive rental growth of 30% amongst Class A properties. Among Western European markets, Manchester in the UK reported a notable rise in rents of 7%.
The most significant falls were recorded in the Middle East, with Abu Dhabi experiencing a drop of 11% - increasing vacancy rates a key factor. Prime offices in Cairo also saw declines of around 5%, political unrest in Egypt certainly playing a role in this, with occupiers nervous regarding the outlook for the country.
As was the case in the first six months of 2011, prime yields across most monitored office markets reported flat yields or only marginal shifts in the second half of the year.
Two of the key Middle East markets, Dubai and Riyadh, reported inward yield shifts of -70bps and -50bps respectively. A marginal compression of yields took place in the main centres in Central and Eastern Europe – Warsaw (-25bps) and Prague (-30bps) - as investors sought, and continue to seek, attractive yields in strong markets outside of the traditional core. Prime Dublin office yields also compressed marginally (-25bps), which Colliers believes is due to the positive impact on investor sentiment of the government pulling out of its retrospective interference in upward-only reviews – although actual transactional evidence remains thin on the ground.
Marginal increases (25bps) were recorded in a couple of the key UK markets, including Bristol and Manchester, as well as in Bucharest, Zagreb and Athens.
Looking forward, Class A rents in a majority of EMEA markets are expected to remain steady over the next 12 months. Further falls are expected to take place in the Middle East and other weak markets such as Athens and Lisbon. Major centres such as London, Moscow, Munich and Frankfurt are expected to see some rental growth at the top end. The vast majority of centres are expected to see prime yields continue to hover around current levels.
The Colliers International EMEA Office Rent Map includes Class A rents, yields, vacancy rates and construction levels in the major markets across the region.
