PRIME office rent in Shanghai is likely to rise 6.1 percent in the next three years which will also see Beijing’s rent growing by a milder 1.8 percent among the world’s business cities, global property consultancy Knight Frank predicted.
The increases are expected to place Shanghai at No. 13 and Beijing at No. 19, according to Knight Frank, which has been tracking prime office rents in the world’s 20 leading business cities.
Globally, eight of the 20 cities will see rent rising by double digits, with Madrid expected to record the biggest jump in rent of 22.2 percent, followed closely by Mumbai’s 21.3 percent and San Francisco’s 20.2 percent.
“Despite the slowdown in China and its impact on the region’s economies, the Asia-Pacific region will still see relatively strong economic growth over the coming years,” said Nicholas Holt, head of research at Knight Frank Asia-Pacific.
The huge forces of urbanization will spark growth in cities in Asian countries, especially China and India, in the next three years, he said.
Bengaluru in India ranks No. 5 with a three-year growth forecast of 15.8 percent in prime office rents while Hong Kong stands at No. 8 with a rise of 12 percent through the end of 2018, according to the Global Cities 2016 Report, which was released yesterday on the Chinese mainland.
Overall office rent in Shanghai rose 5.5 percent year on year in the third quarter of 2015, Knight Frank data showed.
