These are the most expensive cities in Africa to rent office space

1. Luanda, Angola

Prime rent: $80/sq m/month

Prime yield: 14%

Office demand in Luanda has virtually ground to a halt and supply has increased, causing vacancy rates for new buildings to rise above 20%, with further increases expected in 2017.

2. Lagos, Nigeria

Prime rent: $67/sq m/month

Prime yield: 9%

Grade A rents have fallen in recent years, but there is pent-up demand partly resulting from companies’ delayed decision-making, and this finally appears to be strengthening activity in Lagos.

3. N’djamena, Chad

Prime rent: $55/sq m/month

Prime yield: 10%

The city’s office market is basic, and purpose-built offices are generally not suitable for international companies. Hence such operations often work out of hotels and apartments where rents can be very high at XAF30,000/sq m/monthplus.

However, the local rate for offices is around one-third, or less, of this. The US Embassy’s relocation to Dembé/Chagoua is likely to spur the movement of other administrative functions to this area of the city.

4. Malabo, Equatorial Guinea

Prime rent: $37/sq m/month

Prime yield: 11%

The oil and gas sector in Equatorial Guinea has contracted, generating muted office demand. However, the market’s few major office landlords are debt-free and able to cope with vacancies, so rents are likely to decrease less rapidly than would be expected in other markets with similar supply/demand dynamics.

5. Cairo, Egypt

Prime rent: $35/sq m/month

Prime yield: 10.5%

Prime city centre office rents are in the region of US$30-35/sq m/month, and drop to around US$25/sq m/month in New Cairo, albeit prime schemes such as Cairo Festival City quote higher rates.

6. Libreville, Gabon

Prime rent: $35/sq m/month

Prime yield: 9%

Office rents in Libreville are currently coming under downward pressure, primarily due to significant volumes of new space being either recently completed or close to completion in and around the city centre. These new developments have mostly been built by Lebanese or Chinese developers and investors, and are entering the market when demand for new space is subdued.

7. Accra, Ghana

Prime rent: $35/sq m/month

Prime yield: 9%

Asking rents remain relatively high in Accra but are coming under downward pressure due to rising vacancy rates and the limited number of tenants seeking space.

8. Abuja, Nigeria

Prime rent: $33/sq m/month

Prime yield: 9.5%

While the Abuja market has been and is expected to remain a small market, an increasing number of corporates are seeing the importance of having a presence close to the seat of the government.

9. Abidjan, Cote D’ Ivoire

Prime rent: $32/sq m/month

Prime yield: 9%

Several new office developments have been announced by international developers, notably Actis’ Renaissance Plaza project in Plateau, but no significant new supply will come to the market until at least 2018, putting further upward pressure on rents.

10. Algiers, Algeria

Prime rent: $30/sq m/month

Prime yield: 10%

The office market has been subdued over the last year as a result of economic uncertainty and many of the largest construction projects have made slow progress. However, prime rents have been stable, as the availability of space suitable for international occupiers remains limited