This Article is From Dec 19, 2012

New Delhi, world's fifth most expensive office market

Mumbai: New Delhi is the fifth most expensive office market in the world, a survey released in Mumbai on Wednesday said.

New Delhi (Connaught Place) now ranks fifth in the world with an overall occupancy cost of $183.30 per square feet per annum, according to CBRE Global Research & Consulting's semi-annual Prime Office Occupancy Costs Survey.

In contrast, Mumbai's Nariman Point fell from 20th position in July to 25th rank in September this year, while the newly-developed Bandra-Kurla Complex stood 11th, the survey said.

Hong Kong Central remains the world's most expensive office market, followed by London West End, Tokyo and Beijing in the top four slots.

The latest survey provides data on office rents and occupancy costs as of September 30, 2012.

"In prime central business district locations, the supply of space is extremely limited with almost no new supply expected in the near future. This is especially true for quality office space which has led to occupancy cost remaining high," said CBRE South Asia Pvt Ltd Chairman Anshuman Magazine.

Similarly, he said, the dominance of Asia-Pacific in the top 10 "most expensive" business locations worldwide continued, led by Hong Kong-Central, which has an overall occupancy costs of $246.30 per sq. ft. per annum.

The economic slowdown notwithstanding, occupancy costs increased by an average of 2.1 per cent worldwide over the past year, led by the Americas with a 5.2 per cent annual rise and Asia-Pacific with a 2.6 per cent rise, Magazine said.

Overall, the prime office occupancy costs increased in 74 markets worldwide, dropped in 37 and remained unchanged in 22 markets.

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