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Asia and Australasia (excl Japan)

SubSaharan Africa

Middle East/ North Africa

North America

Latin America

Western Europe

.9 %

1%

1.4 %

2.2 %

3.2 %

MY, HOW WE’RE GROWING World GDP growth forecasts for 2015: Asia’s ahead Source: Economist Intelligence Unit

Intelligence

3.5 %

4.5 %

5.7 %

-27 %

Eastern Europe (inc Russia)

Japan

TO LET

TO LET

OFFICES

TAKE-UP IN CENTRAL LONDON AT 2007 LEVEL TO LET

23 Office leasing activity in central London reached a seven-year high by the end of TO LET 2014, totalling 12.4m ft2 (1.15m m2), and 15.8% TO LET TO LET 15% ahead of 2013 totals, research from 14.3% 14% Cushman & Wakefield has found. In a sign of gathering momentum for the office market, all areas of the capital recorded an upturn in activity during the year. The City of London recorded the greatest volume of lettings for 15 years, at 7.2m ft2 (0.67m m2), and in Docklands, take-up doubled compared with 2013, to exceed 1m ft2 (92,900 m2) for the first time since 2010. Take-up from the technology, media and telecoms (TMT) sector accounted for NATION 28% of leasing volumes, while banking and BUILDING financial services took up 22%. RICS is building At the same time, the serviced office partnerships sector is rapidly expanding, reporting a 78% with existing year-on-year increase in leasing volumes institutions to increase to reach 1.2m ft2 (111,500 m2) in 2014. the pool of built However, Cushman cautions that low environment levels$190.8bn of speculative development across professionals central London will squeeze supply in 2015. in the region Meanwhile, the West End continues to be the world’s most expensive office market, CBRE’s Global Prime Office Occupancy Costs survey found. The West End’s overall prime $103.6bn occupancy costs of £180/ft2 (£1,938/m2) a year were above Hong Kong Central at £165/ft2 (£1,776/m2), and Beijing’s Finance Street at £130/ft2 (£1,399/m2). The same study also found that prime rents are rising fastest in US markets such as Seattle and San Francisco, where real estate fundamentals continue to improve.

INFOGRAPHIC IAN DUTNALL ILLUSTRATION BERND SCHIFFERDECKER

AS IA -P AC IF IC

BERKELEY BANKER Last November Trafigura leased the top two floors at 30 Berkeley Square at around £150/ft2 – a UK record

EU RO PE

TO LET

TO LET

11.4% 11.3% TO LET 10.3% TO LET TO LET TO LET 8.8% 8.4% 8.1%

6.1%

TO LET

5.9%

5.9%

TO LET

5.8%

TO LET

5.2%

HONG KONG

TOKYO

SHANGHAI

SAN FRANCISCO

LONDON

PARIS

NEW YORK CITY

SYDNEY

SINGAPORE

MADRID

“Africa’s built environment is seeing unprecedented change”

FRANKFURT

HOUSTON

MEXICO CITY

WASHINGTON DC

MUMBAI

%

LOUISE BROOKE-SMITH FRICS RICS PRESIDENT

THROUGHOUT THE PAST YEAR I HAVE BEEN THROWING MY ENERGIES INTO supporting RICS’ growing presence in Africa. I have visited Ghana, South Africa and Kenya to promote RICS research, services and professionalism. This month our Governing Council meeting in Johannesburg will bring together industry leaders from across Africa and members of our senior governing body from around the globe. It will be an opportunity to showcase what RICS can offer in a continent that is growing more quickly than almost any other region, and to assure ourselves that our approach is the right one. Africa’s built environment is undergoing unprecedented change. Rapid urbanisation is underway – a recent UN report predicted that the proportion of Africans living in cities will reach 56% by 2050. This trend is driving a need to invest $1tn a year in African infrastructure. $91.4bn $84.5bn RICS’ N “UnleashingM Sub-Saharan African Property Markets” research has A highlighted in the real estate markets in South Africa, ME increasedIDdemand DL $39.7bn $33bn E Tanzania. RI Nigeria and Kenya, Ghana, research by JLL lists Kenya and ARecent EA LA F C TIN ST estateRICmarkets Ghana amongAthe top five real worldwide for improved AM A transparency since 2012. Our approach is one of cooperation, building partnerships with existing institutions. We have had a presence in South Africa for some years, and we are building it up to cover the wider Southern Africa region. Kenya is fast becoming a location for organisations wanting to establish a regional base in East Africa, and Ghana is our choice for a regional hub in West Africa. There seems little doubt that Africa would benefit enormously from a larger pool of built environment professionals. If, across Africa, measurement standards could be implemented in conjunction with ethical standards, and these could all be effectively – and independently – regulated, we might create market conditions in which investors, clients and the public as a whole have high confidence, and in which growth is sustainable. Our experience so far is that genuine collaboration between professional bodies across all areas of the built environment – and between national and international entities – promises to bring significant economic dividends, which ultimately benefit society as a whole. This can be just as true in Africa. Follow Louise on Twitter @LbsLouise M A RCH 2015_MODUS

MODUS_Mar15_P06-15_Intel_v5_F1.indd 13

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04/02/2015 10:56

RICS Modus, Global edition - March 2015  

#RICSModus, March 2015 - the AFRICA issue. Africa is one of the world's few remaining great frontiers. Where are the most exciting opportuni...

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