Connaught Place in New Delhi has retained its position in TOP 10 most expensive office markets globally while BKC and Nariman Point in Mumbai ranked at 27th and 40th respectively, according to CBRE South Asia Pvt Ltd survey report.
The real estate consulting firm, in its Global Prime Office Occupancy Costs survey report, said that New Delhi’s Connaught Place – CBD retains its ninth position in the list as last year and the office occupancy cost is valued at UD$ 143.97 per sq. ft. Mumbai’s Bandra Kurla Complex and Nariman Point Central Business District ranked at 27th and 40th positions respectively. In the given position, the current annual prime rent of BKC is valued at US$ 90.67 per sq. ft and the CBD Nariman Point is valued at US$ 68.38 per sq. ft. However, Hong Kong’s Central district retained the top spot as the world’s most expensive market for prime office rents, with the prime occupancy costs valued at US$ 322 per sq. ft.
The report also highlighted that Indian commercial market is further propelling investment growth. “Indian markets continued to have greater investment grade space in the CBDs of the different cities as prominent domestic and global corporates continued to favour investment grade space for setting up front offices in these cities. Commercial office market remains a strong growth propeller for the real estate sector and we are excited that Delhi, being a prime market, continues to witness sustained activity and retains its position amongst the Top 10 most expensive markets in the world,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
Highlighting Asia’s performance in the prime office space leasing segment, the report concluded that 6 of the world’s 10 most expensive office markets are found in Asia. For the second year, Hong Kong’s Central district retained the top spot as the world’s most expensive market for prime office rents, with the prime occupancy costs valued at US$ 322 per sq. ft.
The report underlines the growing significance of talent acquisition race, driving the prime occupancy cost to newer heights. This combined with limited supply and moderate construction pipelines in most cities are the driving forces behind the price growth. The report also suggests very minimal shifts in the Top 10 Most Expensive Market globally, with most countries demonstrating a firm hold on their global positioning as last year.