NCR and Mumbai are among the costliest office locations today
In the latest Asia Pacific office market report by Cushman & Wakefield – that compared the rental values of Central Business Districts (CBD) across Asia Pacific – National Capital Region (NCR) and Mumbai were ranked the fifth and the tenth most expensive location respectively by the CBD.
As has been the trend, expensive office destinations in Hong Kong, Singapore and Tokyo continued to hold the top three positions respectively. Among a total of 25 cities across Asia – Bangalore and NCR saw the highest value rise in office market rentals in the first quarter of 2012. Bangalore CBD recorded an increase of 18 per cent while NCR CBD recorded an increase of approximately 14 per cent over the previous quarter ended December. Jakarta (11.4 per cent), Shenzhen (7.5 per cent) and Adelaide (6.4 per cent) completed the top five fastest growing office rentals.
Ravi Ahuja, executive director, Cushman & Wakefield India, said CBD locations across most cities of Asia, particularly in Hong Kong, had witnessed a significant run up in rental and capital values over the last year. “There has been a clear preference for cost efficient locations which is the reason why traditional high cost locations have seen a slight correction,” he remarked.
Similarly, according to latest RICS India Commercial Property Survey, an easing in global strains has led respondents to upgrade their expectation in both the occupier and investment markets in the country.
With real estate clearly feeling the effects of the softer macro environment in the previous two quarters, the market is now witnessing improved results across several indicators, which could signal the beginning of a turnaround.