Office costs in world's top 10

Dubai has entered the top 10 list for the world's most expensive office market, soaring ahead of previous giants such as New York and Hong Kong.

The Global Market Rents survey from CB Richard Ellis shows a number of changes as commercial property undergoes turmoil resulting from the credit crunch and Asia emerges as a major player.

London's West End was number one. Moscow moved into second with Paris at number eight.

In third place is Tokyo (Inner Central), Mumbai at four, then Tokyo (Outer Central), London City, New Delhi at seven, Singapore at nine and Dubai at 10, according to the research which tracks world markets with the highest and fastest growing occupancy costs for the 12 months to the end of March 2008.

Confirming the rise of Asian markets in this sector, Ho Chi Minh City had the fastest growing occupancy rates up a staggering 94 per cent followed by Moscow on 93 per cent and Singapore on 86 per cent.

"Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch, as they rise faster than global inflation," said Dr Raymond Torto, CBRE's Global Chief Economist. "These cost increases are dominated by emerging markets, caused by both supply and demand imbalance and the depreciation of the dollar relative to local currencies. In some of these emerging markets, Class A office space is seriously lacking," he said.

With Dubai and Singapore moving into the top 10 for the first time these markets are now ahead of Hong Kong and New York.

Although mid-town Manhattan is still the priciest market in the US and number 13 worldwide.

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