Dublin fifth most expensive office location

DUBLIN has soared ahead of Zurich and Geneva to become the fifth most expensive office location in Europe. London’s West End topped the list followed by Moscow, the City of London and Paris.

The list was compiled by commercial property firm NB Real Estate and said rents in Dublin averaged €670 a square metre per annum in 2007 — a increase of 24% on 2006.

This compares to €1,025.9 per square metre in Moscow, where rents rocketed 46.2% in one year.

The West End of London remains the most expensive office district in Europe as rents rose 22.7% to hit €1,758.6 per square metre per annum.

According to NB Real Estate, rental inflation in the Moscow office market is to a significant extent being driven by the Russian commodities boom, whereas the City of London is much more dependent on the financial services sector, which has reduced its demand for space as a result of the credit crunch.

Director at NB Real Estate James Gillett said: “This is the first time office rents in Moscow have surpassed the city, and is illustrative of how Russia has become a European economic powerhouse in recent years.

“A lot of financial institutions in the city scaled back their requirements for new office space as the credit crisis unfolded. This has taken the edge off strong rental growth earlier in the year. A fall in rental values in the city looks increasingly probable.”