The Office market of Beijing Got 5 out of 6 medals awarded in the ranking created by Cushman & Wakefield. A given city was assessed in terms of the quickest growth, the biggest increase of rents or a compression of capitalization rates of rent increase and capital values.
In the ranking of cities of the biggest increase of rents, San Fransisco was awarded the second place after Beijing. Moscow was given a brown medal and the fourth place was taken joint by Shanghai and London.
As Glenn Rufrano, President and Director General of C&W, says, big international sports events are an opportunity for a host city to present itself to the world and this was done by London. Our analysis shows that the London office market reached the top. However, what is worth a particular attention is an international character of the winners’ table, including mature markets like San Fransisco and Hong-Kong or the leader Beijing and other rising markets, like Moscow, New Delhi and Sao Paulo. It is no more possible to say that “rising” markets note the growth and “mature” markets have a high real estate value. The demand and activity are really versatile and these old divisions are no longer valid on the global market.
As far as changes of rents and capitalization rates in the previous year are concerned, the highest growth was noted in South and North America. On the other hand, Asia is characterized by the highest rents and capital rates and the biggest growth since the time of recession.
The weakest results were noted in Europe (with the exception of London and Moscow, which obtained medals), which is related to a small market growth and the influence of the sovereign debt crisis on the making of business decisions. However, as Carlo Barel di Sant’Albano from C&W comments, the Olympics will leave a permanent trace in London in the shape of further development and investments in the eastern part of the capital of the United Kingdom.At the same time, many European markets have strong positions in the global table and, independently of the sovereign debt crisis, we may expect a stable demand growth and activity on the most important mature European markets and further development of other competitive locations, mainly Moscow, Warsaw and Istanbul.
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