Connaught Place seventh costliest office market in world: CBRE
Dec 19 2013 , New Delhi
Mumbai’s Bandra Kurla Complex (BKC) is at the 15th position, while Nariman Point stood at 32nd. Their ranking too have fallen from previous report released in June.
London Central (West End) overtook Hong Kong (Central) as the world's most expensive prime office market.
"India continued to feature in the list of the world’s most expensive office markets, with New Delhi (Connaught Place – CBD) ranking at the 7th position," CBRE said in report.
Occupancy cost of Delhi's Connaught Place stood at USD 156.65 per sq ft per annum.
CBRE Prime Office Occupancy Costs survey provides data on office rents and occupancy costs as of September 2013.
In the previous report, Connaught Place was ranked 5th, Mumbai's BKC was at 11th and Nariman Point 26th.
Commenting on the report, CBRE South Asia Chairman and Managing Director Anshuman Magazine said: "Despite the prevailing uncertainty in the global economy, occupancy costs continue to remain high across key global markets, due to limited supply of prime office space."
"In India, the drop in rankings is reflective of the slower Indian real estate market coupled with rupee depreciation," he added. Occupancy cost comparisons in US dollars are affected by currency exchange rates.
CBRE tracks occupancy costs for prime office space in 126 markets across world. Of the top 50 'most expensive' markets, 20 are in Asia Pacific, 19 are in Europe, Middle East and Africa (EMEA) and 11 are in Americas.
The Central Business District (CBD) of Connaught Place and its surrounding areas continue to remain a priority destination for corporate occupiers, owing to its central location and ease of connectivity.
Over the last few months, Connaught Place has witnessed an increase in enquiries, although transaction closures and absorption rates have remained low.
London’s West End’s overall occupancy costs of USD 259.36 per sq ft per year topped the most expensive office list. Hong Kong-Central followed with total occupancy costs of USD 234.3.
Beijing’s Finance Street, Beijing’s CBD and Hong Kong’s West Kowloon rounded out the top five.
Globally, occupancy costs rose 2.2 per cent for the 12 months ending Q3 2013, up from the 1.4 per cent annual growth rate seen at the end of Q1 2013 calendar year.