Middle East and Africa Office Rents. Jones Lang LaSalle MEA Investor Weather Map

Stormy Outlook

Jones Lang LaSalle's Office Weather Map illustrates current market conditions across a range of Middle East and African (MEA) cities. All the markets covered have seen rents either remain stable or decline over the past quarter, with the Dubai and Casablanca markets experiencing the greatest falls as the markets move increasingly in the favour of tenants. The major Saudi Arabian cities, Riyadh and Jeddah saw rentals remain largely 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.

Print Q2 2009 Weather Map

Use the tool on the left to zoom in, drag the map to view other areas.

Source: Jones Lang LaSalle Research, Q2 2009
Autumn 2009: *Q2 2008 – Q2 2009; **Q1 2009 – Q2 2009

This map illustrates where Jones Lang LaSalle estimate each prime office market is within its individual rental cycle as at end of Q2 2009. Markets can move at different speeds and directions. The map is a convenient method of comparing the relative position of markets in their rental cycle. Their position is not necessarily representative of investment or development market prospects. The symbols and figures refer to Prime Face Rental Values. The symbols reflect an owner/investor view, with falling rentals being represented as stormy conditions. The opposite applies to occupiers, for whom declining rentals represent a generally sunny outlook.

Prime Rental Conditions

The weather symbols provide an indication of where Jones Lang LaSalle estimate each market is located within their short term rental cycle. These are generalised representations and take account of market sentiment as well as a variety of quantitative data, including face rents, rent free periods, known demand and future supply.

Maximum rate of rental growth:
The rate of rental growth is at its maximum level both in terms of its speed and significance. This indicates that the market has reached the peak rate of rental growth and the rate of rental growth could be expected to slow in the short term.

Rents growing:
There has been a continuing trend showing rental values increasing. The symbol considers a consensus based upon market data and sentiment, with reference to short term forecasts and the overall demand-supply balance.

Rents stagnating:
There is no evidence of rental growth or rental decline over the period. More often the rents stagnating symbol indicates a period subsequent to declining rental growth and preceeding suggests a period of declining rents.

Rents falling:
There has been continuing trend showing rental values falling. The symbol considers a consensus based upon market data and sentiment, with reference to short term forecasts and the overall demand-supply balance.

Maximum rate of rental decline:
The rate of rental decline is at its maximum level both in terms of its speed and significance. This indicates that the market is approaching the bottom of its rental growth cycle and the rate of rental growth could be expected to slow in the short term.

Rents stabilising:
There is no evidence of rental growth or rental decline over the period. More often the rents stabilising symbol indicates a period subsequent to declining rental falls and preceeds a period of growing rents

Prime rental % change year on year* (based on local currency)

Prime rental % change quarter on quarter** (based on local currency)

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