A latest report by DTZ Research claimed that Dubai remained the fastest declining commercial real estate markets in the world in 2009 yet it continued to be one of the most expensive locations in the Middle East. The region, however, reported around 12 per cent decline in occupancy costs in 2009.

Nick Witty, DTZ’s chief operating officer for the Middle East said, “Occupiers throughout the region are taking advantage of the current market to demand increased leasing incentives from landlords. These include more flexible lease terms, extended rent-free periods and that office space should be fully or partially fitted out.”

Oil rich Dubai reported 34 per cent decline in office rents during the reporting period apparently due to global financial crisis. Office rents in Abu Dhabi too declined 22 percent in 2009 pushing the city at 12th place from 8th, as per global average occupancy costs.

Singapore and Moscow are the other international destinations where office rent decline significantly owing to fall in commercial activities. Meanwhile, London’s West End, according to DTZ, remained most expensive market last year followed by Tokyo’s Central 5 Wards.