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Singapore offers developers one of the world’s most attractive returns on minor office building refurbishment investments, according to the latest report by Arcadis.
The report, which ranked the city-state fourth, said developers can expect a return of 7.53 percent on their capital expenditure on minor refurbishment work.
Notably, the report considered both major and minor refurbishment projects in 15 cities worldwide and ranked them based on the best expected net rental income return.
Minor building refurbishment primarily aims to prolong the life of an office asset by up to five years, while major refurbishment aims to extend the life of the office asset by 15 to 20 years, said the report.
Other Asian cities included in the list are Shanghai, which was ranked third, and Hong Kong, which clinched the seventh spot.
The list was headlined by Madrid, followed by London, while Warsaw and Milan was ranked fifth and sixth respectively.
Rounding up the top ten are Paris, Frankfurt and New York.
Meanwhile, London topped the list on returns for major office refurbishments investments, with Hong Kong being the only Asian city to be included in the list, taking seventh place.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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