New Delhi’s Central Business District Connaught Place is seventh among the world’s most expensive prime office markets with an annual occupancy cost or rental value of $149.71 per sq ft, according to the latest edition of property consultancy CBRE Research’s Global Prime Office Occupancy Costs survey.
Bandra Kurla Complex (BKC), Mumbai’s Alternative Business District, stood at 19th position with an annual occupancy cost of $94.79 per sq feet, while Mumbai’s Central Business District of Nariman Point with annual occupancy cost of $71.49 is at 34th position.
Among global markets, Hong Kong (Central) became the world’s highest-priced office market with an overall prime occupancy cost of $290 per sq ft per annum. Asia continued to dominate the list of the world’s most expensive office locations, accounting for seven of the top 10 markets, according to the survey. Beijing’s Finance Street, at 188 per sq ft, its Central Business District at $182 per sq ft, and Hong Kong’s West Kowloon, at $179 per sq ft rounded out the top five positions. Apart from Connaught Place-CBD in New Delhi, Marunouchi/OtemachiTokyo in and Pudong in Shanghai also featured in the top 10 list.
Global prime office occupancy costs, reflecting rent plus local taxes and service charges for the highest-quality, prime office properties, rose 2.4 per cent year on year, according to the report. Prime office occupancy costs are growing at a faster pace than average in Asia Pacific, up 2.7 per cent year over year. A few key Southeast Asian markets such as Singapore and Jakarta registered decreases.
“Over the past year, the commercial real estate market in India has witnessed positive movement. At rank seven, Connaught Place continues to attract occupiers and witnesses steady leasing activity for front office space,” Anshuman Magazine, managing director of CBRE South Asia said in a statement. “Its central location and ease of connectivity continues to attract big corporates, especially banks, other financial institutions and engineering firms,” he added.
Mr. Magazine said India continues to be a preferred destination for various multinationals to expand their current operations or to set up their offices due to adequate supply of quality office space.
The CBRE study revealed that 22 markets moved up more than three rankings with 41 per cent of these in the Asia Pacific. The majority of these markets (72 per cent) are not global gateway cities, indicating that as rents continue to rise in line with economic growth, cost-conscious companies are seeking space in the less expensive markets.
About 41 per cent of the markets moving up are in the Asia Pacific, which indicates that the region is still growing despite the economic slowdown in China.
BKC is at 19th position while Nariman Point
is at 34th
position
