Connaught Place is fifth most expensive office market
Of the Top 50 ‘most expensive’ markets, 19 are in Europe, Middle East and Africa (EMEA), 20 in Asia Pacific and 11 in the Americas.
Connaught Place in the national capital Delhi is the fifth most expensive office market in the world. According to ‘Global Prime Office Occupancy Costs’, a semi-annual survey by CBRE, a leading commercial real estate services and investment firm, at nearly $157 per sq. foot per annum, Delhi’s central business district (CBD) moved up a spot in the rankings due to rupee depreciation.
Bandra-Kurla Complex (BKC), the alternative business district in Mumbai, was at 15th position ($101.69 per sq. foot per annum) and the city’s CBD of Nariman Point was at 30th position ($75.85 per sq. foot per annum) in the Top 50 rankings for global prime office properties.
London’s West End remained the world’s costliest prime office market while Asia continued to dominate the world’s most expensive office locations, accounting for four of the top five markets, the report said.
“Although Delhi’s Connaught Place moved up one spot in the rankings due to the rupee depreciation, occupancy costs in this market remained largely stable due to a positive market sentiment,’’ Anshuman Magazine, CMD, CBRE South Asia, said in a statement.
Mumbai’s BKC and Nariman Point showed a nominal decrease of less than 1 per cent over a 12-month period while year-on-year office occupancy costs rose by about 2.2 per cent in the Bengaluru CBD, broadly in line with global inflation.
CBRE tracks occupancy costs for prime office space in 127 markets around the globe. Of the Top 50 ‘most expensive’ markets, 19 were in Europe, Middle East and Africa (EMEA), 20 were in Asia Pacific and 11 were in the Americas.
The report said the change in prime office occupancy costs mirrored the gradual recovery of the global economy. Global prime office occupancy costs rose two per cent year-over-year, with the Americas up 2.9 per cent, EMEA rising 1.5 per cent and Asia Pacific up 1.4 per cent. “Occupier caution has declined and corporate confidence is starting to translate into a degree of expansionary momentum,’’ Richard Barkham, Global Chief Economist, CBRE said in a statement.
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