The most significant drop in prices took place for the most expensive and cheapest premises (0,6% during the last 8 months)
Tenants of expensive premises tend in favour of budget options, and prices for Class B offices grew by 2%, Finprom.kz reports.
Demand in the rental market for offices is dropping; business centres are forced to cut prices if they want customers. The cost of renting both the most expensive and the most economical office premises has fallen in price most.
In particular, prices for rental of Class A offices in January-August of this year were lower by 0.6%, taking into account the level of inflation. The drop in prices in this segment was recorded for the first time in the last 5 years, however a slowdown is observed for the third consecutive year.
In August of this year, the average cost of renting an office of class A in the country was KZT 4.1 thousand per 1 sq. meter.
Class B offices are the only segment where the prices in this year grew, which indicates a shift in consumer demand from more upscale premises.
During the first 8 months of this year, rental prices for such offices rose by 1.8% - which is the strongest growth rate in the segment for the last 3 years. More significantly, the demand for Class B offices grew in 2014 (+ 3.7% in 8 months) and in 2012 (+ 16.6% in January-August).
Renting offices of class C and D are losing popularity this year. During January-August prices for class C and D offices fell by 0.5% and 0.6%, respectively.
Recall that the unstable situation in the economy in 2015-2016 contributed to the fact that tenants moved from expensive options to cheaper ones, which spurred demand for this class of premises. In particular, last year the prices for rental of Class C offices showed the highest growth rate (+ 1.9%), in 2015, the most actively increased prices for Class D offices (+ 10.8%).
During the first 8 months of 2017, in the segment of Class A offices, premises in the Mangistau oblast fell sharply (+ 11.7%). In Astana, such offices became cheaper by 0.5%, in Almaty, by contrast, they went up by 1.2%.
In the Class B segment, the most significant drop in rental prices is also in the province of Mangistau (-3.9%). In Astana, the rent of such offices became cheaper by 1.5%, in Almaty it increased by 1.8%.
Most class C offices have fallen in price this year in Karaganda oblast (-0.8%), class D offices in the Almaty province (-6.1%).
Reported by FinProm.
