Delhi’s Connaught Place most expensive office market in India, 7th globally
NEW DELHI: New Delhi’s Central Business District Connaught Place is seventh among the most expensive prime office markets in the world with an annual occupancy cost 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 while Mumbai’s Central Business District of Nariman Point is at 34th position in the survey.
Global prime office occupancy costs, reflecting rent plus local taxes and service charges for the highest-quality, prime office properties, rose 2.4% year-on-year. Prime office occupancy costs are growing at a faster pace than average in Asia Pacific, up 2.7% 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 (CP) continues to attract occupiers and witnesses steady leasing activity for front office space,” says Anshuman Magazine, managing director of CBRE South Asia.
“Its central location and ease of connectivity continues to attract big corporates – especially banks, other financial institutions and engineering firms,” he points out.
Magazine says 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.
Among global markets, Hong Kong (Central) became the world’s highest-priced office market with an overall prime occupancy costs 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 ten markets, according to the surveyBeijing (Finance Street) ($188 per sq ft), Beijing (Central Business District (CBD)) ($182 per sq ft) and Hong Kong (West Kowloon) ($179 per sq ft) rounded out the top five positions. Apart from New Delhi (Connaught Place – CBD), Tokyo (Marunouchi/Otemachi) and Shanghai (Pudong) also featured in the top ten list.
The CBRE study revealed that 22 markets moved more than three rankings upwards with 41% of these in Asia Pacific. The majority of these markets (72%) 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% of the markets moving up are in Asia Pacific, which indicates that the region is still growing despite the economic slowdown in China.