Connaught Place, most expensive office market in India
Connaught Place in the national capital is the most expensive prime office market in India and the ninth most expensive office market in the world, with an occupancy cost of $153.89 per square feet, according to property consultancy CBRE.
The central business district has also left behind major business centres such as Dubai, Downtown Boston and Shanghai in the ranking.
Mumbai’s Bandra Kurla Complex (BKC) is ranked the second most expensive office market in India and 20th in the world, with an occupancy cost of $96.91 per sq ft, followed by the central business district (CBD) of Nariman Point, ranked 33rd on the list of the top 50 most expensive office markets around the world with an occupancy cost of $73.10 per sq ft.
“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,” said Anshuman Magazine, Chairman – India & South-East Asia, CBRE.
Global prime office occupancy costs reflect rent, plus local taxes and service charges for the highest-quality, prime office properties.
Hong Kong's central business district Central and London’s West End continue to be the two most expensive markets in the world, with occupancy costs of $302.51 per sq ft and $213.85 per sq ft, respectively.
Asia accounted for seven of the top 10 markets, comprising West Kowloon in Hong Kong, Beijing's CBD and Finance Street, Marunouchi/Otemachi in Tokyo and Pudong in Shanghai.
"The top 10 list remains largely consistent, reflecting the ongoing strength of these global gateway cities in attracting and maintaining a successful occupier base," said the report.
Global prime occupancy cost rose by 1.9% year-on-year in the March quarter this year, lower than 2.2% growth rate in the year ended Q1 2016.
"This was largely attributed to the slowdown in the year-on-year growth in Asia Pacific (1.2%) and Middle East and Africa (0.8%). On the other hand, occupancy costs in the Americas increased by 3.6% year-on-year," the report said.
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