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Delhi’s Central Business District (CBD) of Connaught Place has been ranked as the sixth most expensive prime office market in the world with occupancy costs at $158 per sq ft.
According to CBRE’s semi-annual Global Prime Office Occupancy Costs survey, London’s West End remained the world’s highest-priced office market with occupancy cost at $274 per sqft followed by Hong Kong Central with $251 per sq ft and Beijing’s Finance Street at 198 per sqft.
But Asia continued to dominate the world’s most expensive office locations, accounting for three of the top five markets, the survey said. Mumbai’s alternative business district of Bandra–Kurla Complex (BKC) remained at the 16th position with $103.52 per sq ft, and it’s CBD of Nariman Point at 32nd position with $76.57 per sq ft in the top 50 rankings for global prime office properties.
Anshuman Magazine, Chairman & MD, CBRE South Asia said, “Although New Delhi’s Connaught Place moved up two places to the sixth spot on the global top 10 rankings over Q1 2014, annual occupancy costs here remained stable because of Rupee appreciation since the first quarter. The Capital has seen a strong leasing environment amid limited availability and shortage of new corporate real estate spaces. Office occupiers from the financial services and media sectors dominated commercial space transactions during the year.”
Connaught Place remains a highly sought after destination for corporate office occupiers, because of its central location and connectivity to the rest of the city. During the review period, annual office occupancy costs in Gurgaon too remained stable; while that of Nariman Point dropped by about 2% and BKC by about 6%. Meanwhile, Bangalore’s Central Business District, which saw a nearly 9% drop, was among the top five global prime office markets to witness a decrease in yearly occupancy costs.
The survey provides data on office rents and occupancy costs as of September 30, 2014.The occupancy costs represent rent, plus local taxes and service charges. The occupation cost figures have also been adjusted to reflect different measurement practices from market to market
