Skyscraper rents rise faster in London than anywhere else, says research

The cost of taking up space in London’s skyscrapers is growing at a far faster rate than in other major cities, new data has revealed.

In the latest skyscraper index from property firm Knight Frank, which looks at 21 cities around the world, rents in the various skyscrapers piercing the London skyline – including the Walkie Talkie, Cheesegrater and Shard – rose to around £87.50 per square foot during H2 2015.

While the 9% increase is lower than the rent increase of 11% seen during the first half of last year, London was still found to have outstripped a number of major cities around the world between July and December 2015.

The Guardian has reported that rents in London rose at twice the speed of those seen in San Francisco (4.76%), and around 300% faster than rents in Mumbai and Hong Kong (both at 3%).

Ally McDade, an associate in the research team at Knight Frank, said: “For the second time in 12 months, London is the fastest growing office tower market in the world due to its diversity of occupier demand and constrained supply.”

The firm said rents across London’s skyscraper space are likely to increase further as demand outpaces supply.

While the capital topped the index in terms of increase rates, Hong Kong retained its spot as the world’s most expensive place for renting skyscraper space, with average annual rents sitting at $263.25 per square foot – more than twice the London average.