CBRE Group Inc., the leading global real estate consulting firm, has announced that New Delhi’s Central Business District (CBD) of Connaught Place is the ninth most expensive office market in the world with an occupancy cost of USD 153.89 per sq. ft. per annum.
According to the reports, these are the findings of the latest edition of its bi-annual global prime office occupancy costs survey. Apart from New Delhi (Connaught Place - CBD), Beijing (Finance Street), Tokyo (Marunouchi/Otemachi) and Shanghai (Pudong) also featured in the top 10 list.
On the list, Mumbai’s Bandra Kurla Complex (BKC) ranked 20th while the CBD of Nariman Point, ranked 33 on the list of the top 50 most expensive office markets around the world.
Anshuman Magazine, Chairman, India & South-East Asia, CBRE Group said, “Despite the fact that, Connaught Place has limited supply of prime office space, its location in the heart of India’s capital, coupled with great infrastructure and connectivity to other parts of the city, makes it to be an ideal location for any business to be in.”
He further included that with India’s commercial real estate segment continuing to do well, prime locations across the country including Connaught Place in Delhi and Bandra Kurla Complex and Nariman Point in Mumbai continue to witness demand for prime office space from occupiers.
The two most expensive markets in the world continue to be Hong Kong (Central) and London’s West End.
According to the survey, Asia continues to dominate the list of the world’s most expensive office locations, accounting for seven of the top 10 markets.
Global prime office occupancy costs, which reflect rent, plus local taxes and service charges for the highest-quality, prime office properties, rose 1.9 percent year-on-year which is lower than the growth in rate in the year ended Q1, 2016 (2.2 percent). This was largely attributed to the slowdown in the year-on-year growth in Asia Pacific (1.2 percent) and EMEA (0.8 percent). On the other hand, occupancy costs in the America increased by 3.6 percent year-on-year.
Today’s occupier, in India and around the globe is expecting their preferred office space to feature the latest technologies and amenities available in the market.
CBRE tracks occupancy costs for prime office space in 121 markets around the globe. Of the top 50 most expensive markets, 18 were in Asia Pacific, 20 in Europe, the Middle East and Africa (EMEA) and 12 in the America.