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Connaught Place 6th-most expensive office space market in Asia Pacific: JLL

Among other Indian cities, Mumbai is ranked 14th with an average occupancy cost of $96

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Connaught Place
Connaught Place

Delhi's Connaught Place has the sixth most expensive rentals for premium offices among 20 major markets in the Asia Pacific region, according to data compiled by international real estate consultant JLL.

In 2017, Delhi and Mumbai were ranked 3rd and 11th on the list, respectively.

The average occupancy costs – including rent, taxes and service charges – in Connaught Place are at $142, which is higher than Pudong in Shanghai, Shinjuku in Tokyo and even Singapore, JLL said.

Among other Indian cities, Mumbai is ranked 14th with an average occupancy cost of $96. The rankings are based on the fourth edition of JLL's Premium Office Rent Tracker (PORT), which takes into account achievable rent in the highest quality buildings in premier office districts of 61 cities.

“The commercial office segment is a strong growth driver for the real estate market in Delhi-NCR. Since early 90s and especially in the post-liberalisation era, Connaught Place has been one of the most preferred and sought after office locations by leading Indian and global corporates. This coupled with limited supply of office space, its centralised location in the heart of Delhi, robust infrastructure and good connectivity makes Connaught Place the perfect destination for companies to have an office address there," said Ramesh Nair, CEO and Country Head, JLL India.

"Driven by single-digit stable vacancies, steady lease rentals and high absorption, Connaught Place continues to be the premier and leading office market for corporates from across broad spectrum of different businesses. With the Delhi NCR market witnessing 25 percent on year increase in net absorption at 3.2 million sq ft during January – September period, we are quite optimistic about the this growth trend continuing in the near-term as well," said Samantak Das, Head of Research and Chief Economist, JLL India.

With net absorption at 23.4 million sq ft during the January–September period, 18 percent higher on year, the commercial office sector in India continues to witness strong growth momentum, JLL Research said.

Globally, for the fourth successive year, Hong Kong’s Central has the world’s most expensive rent for premium offices at $338. The occupancy costs are 60 percent higher than New York’s Midtown and nearly 75 percent more expensive than London’s West End, PORT data shows.

Banks and financial services companies are the top occupiers of premium office space globally, as the sector leads in more than half of the 72 markets covered.

"High-value, high-margin businesses in financial services such as private, corporate and investment banking firms, rent premium office space in Beijing, Shanghai, Tokyo and Singapore. While cost remains a key factor, these companies prioritize access to talent and the need for amenities when selecting their next office location. They target premium quality buildings to attract and retain top talent, which also helps to enhance their brand image," said Jeremy Sheldon, Managing Director, Markets and Integrated Portfolio Services, JLL Asia Pacific.
Country Market Total occupancy cost (USD)
1 Hong Kong Hong Kong, Central $338
2 China Beijing, Finance St $189
3 China Shenzhen $155
4 China Beijing, CBD $153
5 Japan Tokyo, Marunouchi $148
6 India Delhi, Connaught Place $142
7 China Shanghai, Pudong $131
8 Hong Kong Hong Kong East $122
9 Japan Tokyo, Shinjuku $118
10 Singapore Singapore $108
11 China Shanghai, Puxi $102
12 Australia Sydney $102
13 South Korea Seoul $99
14 India Mumbai $96
15 Japan Osaka $94
16 Hong Kong Hong Kong, Kowloon East $83
17 China Guangzhou $76
18 Taiwan Taipei $66
19 Vietnam Ho Chi Minh City $59
20 Indonesia Jakarta $57

First Published on Dec 10, 2018 02:21 pm
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