Dubai’s Skyscrapers Rank Among World’s Top 20 Most Expensive

Skyscrapers in Dubai demand an average capital value of $620 per sq ft, making the emirate gain a spot among the top 20 cities on Knight Frank’s Skyscraper Index, which ranks the world’s most expensive cities for high-rise properties.

Dubai, which ranks 18^th on the index, houses the world’s tallest tower, the Burj Khalifa, which soars 828 meters high.

The first place on the index was taken by Hong Kong, with skyscraper prices in the city averaging a whopping $6,330 per sq ft, 50 per cent higher than Tokyo, which ranked second.

Hong Kong’s lead can be attributed to “the restricted geographic area of the city, which results in developers having to convert air into ‘land’ and build upwards,” Knight Frank said in a statement.

Khawar Khan, research manager at Knight Frank UAE, said: “Skyscrapers are the Lamborghinis of the office world, as investors pay more to own these prestige and high quality buildings.

“Upper floors in skyscrapers command higher rents compared to office space in low rise buildings, due to the ego appeal of having an office that towers over competitors.

“Also, the panoramic views are a strong marketing tool, as a client can be taken into a meeting room offering an aeroplane perspective on the city below. Thus, the premium rents on offer justify the high prices investors will pay to own such a property.”

While traditionally, financial and professional firms were the main occupants of skyscrapers, a wider range of firms are renting high rise space in recent years, the report found.

“As the digital technology revolution continues, skyscrapers could offer a quick way of delivering large blocks of office space to keep pace with rapid headcount growth for such firms,” added Khan.

 

The Skyscraper Index
	Cities	Prime Capital Value (per sq ft)*
1	Hong Kong	$6,330
2	Tokyo	$4,180
3	New York (Manhattan)	$2,980
4	London (City)	$2,400
5	San Francisco	$2,260
6	Singapore	$2,000
7	Sydney	$1,740
8	Shanghai	$1,670
9	Beijing	$1,600
10	Los Angeles	$1,230
11	Seoul	$1,210
12	Paris (La Défense)	$1,170
13	Frankfurt	$1,170
14	Moscow	$1,140
15	Chicago	$950
16	Mumbai	$780
17	Madrid	$720
18	Dubai	$620
19	Kuala Lumpur	$598
* Based on upper floors
Source: Knight Frank, Newmark Grubb Knight Frank