At 7th Place, Delhi’s Connaught Place More Expensive than New York, Shanghai Office Market

New Delhi, June 16, 2016: With annual occupancy cost of US$149.71 per sqft, New Delhi’s Central Business District (CBD) of Connaught Place ranks as the seventh most expensive prime office market in the world. Mumbai’s Alternative Business District of BandraKurla Complex (BKC) is at 19^th position and the city’s Central Business District of Nariman Point is at 34th position, according to the latest edition of CBRE Research’s Global Prime Office Occupancy Costsbi-annual survey released today.

Global prime office occupancy costs—which reflect rent, plus local taxes and service charges for the highest-quality, prime office properties—rose 2.4% year-on-year. In Asia Pacific, prime office occupancy costs are growing at a faster pace than average, up 2.7% year-over-year. A few key Southeast Asian markets registered decreases, including Singapore and Jakarta.

Anshuman Magazine, CMD, CBRE South Asia, said, “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. Its central location and ease of connectivity continues to attract big corporates – especially banks, other financial institutions and engineering firms. Overall, 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.”

Hong Kong (Central) became the world’s highest-priced office market with an overall prime occupancy costs of US$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 survey, Beijing (Finance Street) (US$188 per sq. ft.), Beijing (Central Business District (CBD)) (US$182 per sq. ft.) and Hong Kong (West Kowloon) (US$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 study revealedthat 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.

CBRE tracks occupancy costs for prime office space in 126 markets around the globe. Of the top 50 most expensive markets, 20 were in Asia Pacific, 20 in Europe, the Middle East and Africa (EMEA), and 10 in the Americas.

Notes

1. The GlobalPrime Office Occupancy Costs report is a survey of office occupancy costs for prime office space in 126 cities worldwide.

2. The latest survey provides data on office rents and occupancy costs as of March 31, 2016.

3. The Largest Annual Changes rankings are based upon occupancy costs in local currency and measure. The Most Expensive ranking is based upon occupancy costs in US$ per sq. ft. per annum.

4. The figures given in this release refer to occupancy cost. This represents rent, plus local taxes and service charges. The occupation cost figures have also been adjusted to reflect different measurement practices from market to market.

5. Due to methodology changes, comparisons with figures in previously released reports are not valid.

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Corporate Comm India (CCI Newswire)