Knight Frank Global Cities Report 2015 ranks Sydney 5th in rental forecasts
The research, which tracks prime office markets in 15 global cities (including six in the Asia-Pacific region), forecasts that prime office rents will reach record highs by the end of the decade as a result of the rise in urban living
Oct 01, 2014
Source :
Knight Frank


The latest Knight Frank Global Cities Report 2015 has ranked Sydney fifth among 15 global cities in rental forecasts.

The Global Cities Report 2015 forecasts the effect of 1.1 billion new city dwellers on the office market over the next five years across the world. The research, which tracks prime office markets in 15 global cities (including six in the Asia-Pacific region), forecasts that prime office rents will reach record highs by the end of the decade as a result of the rise in urban living.

The Knight Frank Global Cities Index forecasts growth of 19.9 per cent over the next five years and predicts the index will exceed its pre-GFC peak around mid-2015.

Eight of the 15 global cities including five Asian cities recorded negative growth in office rents based on data spread over five years.

Singapore and Madrid, which were at the bottom of the list between 2009 and 2013, showed the most rental volatility and estimates for 2014 are reflecting strong growth (9.8 per cent and 16.3 per cent, respectively).

Sydney dropped one place to fifth position (second for Asia-Pacific) in the rental forecast period (2015–2019), while Madrid rose to second place in the rental forecasts behind San Francisco, which ‘topped the chart throughout the decade’.

James Roberts, head of commercial research at Knight Frank, connects premium pricing for real estate in cities to the presence of high-value knowledge workers. These are the ‘Global Cities’ and they are rarely ignored by a property investor or developer due to their size.

Knight Frank also predicts that vacancy rates will diminish in all of the top 10 cities globally by 2019, with the average vacancy rate at 6.3 per cent, down from 7.8 per cent in 2014, due to restricted supply of new office stock and heightened demand for commercial space.

Tokyo and London will see vacancy rates drop to just 3.9 per cent and 4.4 per cent, respectively, in 2019, placing them lowest among the 15 global cities.

Matt Whitby, head of research and consulting at Knight Frank Australia adds that technology and IT will be driving the uptake of office space in Australia, as they have done globally.


Latest Realty News

Realtors Unhappy Over Status Quo in RBI Monetary Policy
Oct 01, 2014
The Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body of realtors in the country, expressed disappointment over the Reserve Bank's policy to keep key rates unchanged
US to Help India Develop Three Smart Cities
Oct 01, 2014
The US will help India in developing three smart cities in Allahabad, Ajmer and Visakhapatnam
No Finding Received on Rs. 30 Crore Service Tax Evasion Charge: DLF
Oct 01, 2014
DLF, India's largest realty firm, said it has not received any findings from authorities on alleged service tax evasion of about Rs. 30 crore
Rajan Says Real Estate Reasonable, Let's Not Count Aurangzeb Road and Malabar Hill
Sep 30, 2014
Reserve Bank Governor Raghuram Rajan on Tuesday said property prices in the country are not frothy barring a few pockets
Govt bought pvt forest, sold it to real estate cartel, says PAC
Sep 30, 2014
The public accounts committee (PAC) of the Goa state legislative assembly 2013-14, has alleged a prima facie fraud in the disposal of six hectares of land
BDA plans revamp to face new challenges
Sep 30, 2014
The Bhubaneswar Development Authority (BDA) is planning a massive shake-up in its manpower and decision-making process to suit its centemporay role
Committee constituted for change of land use
Sep 30, 2014
The Municipal Administration and Urban Development (MA&UD) department has constituted a committee for considering change of land use cases
No-smoking boards must for new public buildings
Sep 30, 2014
The next time you approach the fire and emergency services department to get a no-objection certificate (NoC) for a new building that will house public facilities, make sure 'no-smoking' boards are installed in its key locations
BDA gives sapling work to building agency
Sep 30, 2014
The Bangalore Development Authority (BDA) may claim that it has spent crores on planting saplings across the city, but the Upa Lokayutka has found that the authority entrusted the work to a company that has expertise only in building concrete jungle
NCR flat buyers unite to fight delayed deliveries
Sep 30, 2014
To give impetus to the ongoing struggle to gain ownership of their apartments, homebuyers in Noida, Greater Noida and Gurgaon have joined hands in floating a unified banner called the NCR Flat Buyers Association

Latest Realty News Of State

Realty Talk's