Dark clouds persist in Most Locations
Jones Lang LaSalle's Office Weather Map illustrates current market conditions across a range of Middle East and African (MEA) cities. With the exception of Cairo and Casablanca, all the markets covered have seen rents either remain stable or decline over the past quarter, with the Dubai market experiencing the greatest fall as the market has moved increasingly in the favour of tenants. In the major Saudi Arabian cities, Riyadh and Jeddah, rents remained unchanged over the past quarter, although both have experienced declines over the past year.
The map is based on Jones Lang LaSalle's proprietary prime office data series.
Use the tool on the left to zoom in, drag the map to view other areas.
 Print Spring 2010 Weather Map
Source: Jones Lang LaSalle Research, March 2010
Spring 2009: *Q4 2008 – Q4 2009; **Q3 2009 – Q4 2009
The weather symbols provide an indication of how Jones Lang LaSalle forecasts prime rents will move over the next 12 months in each market. The intensity of the weather symbol is a relative measure comparing how the forecast relates to historic 10-year volatility. Each market is therefore assessed relative to its own rental cycle. Market symbols are not necessarily representative of investment or development market prospects. The figures refer to prime face rental values.
Notes on Weather Symbols
The weather symbols provide an indication of how Jones Lang LaSalle forecasts prime rents will move over the next 12 months in the each market. These are generalised representations based on both a technical methodology - examining long term average rental growth and market volatility - and market sentiment.
Maximum rate of rental growth: The rate of rental growth will approach its maximum level both in terms of its speed and significance over the next 12 months, indicating that the market will reach the peak of its rental growth cycle. Reference is made to short term forecasts, market sentiment, historical rental growth and rental volatility.
Rents growing: Rental values will increase over the next 12 months but the market will not reach its peak. The symbol considers a consensus based upon historical market data and sentiment, with reference to short term forecasts.
Rents stagnating: Prime rents are forecast to stay flat over the next 12 months. More often the rents stagnating symbol indicates a period subsequent to positive rental growth and suggests a period of declining rents in the medium term.
Rents falling: Rental values will decline over the next 12 months. The symbol considers a consensus based upon historical market data and sentiment, with reference to short term forecasts.
Maximum rate of rental decline: The rate of rental decline will approach its maximum level both in terms of its speed and significance over the next 12 months, indicating that the market has reached the bottom of its rental growth cycle. Reference is made to short term forecasts, market sentiment, historical rental growth and rental volatility.
Rents stabilising: Prime rents are forecast to stay flat over the next 12 months. More often the rents stabilising symbol indicates a period subsequent to declining rental falls and suggests a period of growing rents.
Please contact us directly to discuss any of the issues raised here or for more information on our research capability.
Craig Plumb
Head of Research - MENA
craig.plumb@jll.com
|
|
|
|