New Delhi: With decline in rentals, Mumbai has become lesser expensive for office space, but remains at the sixth position among the world's costliest office markets, a report has said.
According to a report on global trends of office spaces by real estate consultant CB Richard Ellis, Mumbai fell to 6th position from 5th in the list of the world's most expensive office markets, which is topped by Tokyo.
"This ranking highlights the decrease in rentals we have witnessed in the last six months due to a reduction in demand. To reduce office occupancy costs further and facilitate more supply of office space, we need to urgently improve our infrastructure and amenities. This would bring our world rankings down further and make India more competitive," CBRE Chairman and Managing Director (South Asia) Anshuman Magazine said.
However, the National Capital's ranking rose to 12th place mainly due to shortage of prime office complexes in Delhi. It had occupied 13th position in the consultant's last findings in November, 2008.
Magazine said Mumbai's ranking among the top 10 expensive markets and Delhi being at the 12th place reflect the shortage of office space in India.
The average annual rentals of Mumbai and Delhi stood at 131.04 dollar per sq ft and 86.94 dollar per sq ft respectively as on March 31, 2009.