Delhi's Connaught Place has retained its position among the top-10 most expensive office markets in the world. Mumbai's BKC and Nariman Point are ranked at 27th and 40th respectively, says a report.
Hong Kong continues its position to be the most expensive location in the world for the second consecutive year. APAC's prime office occupancy cost almost doubled to 3.3 percent in the first quarter of 2019 from 1.7 percent in quarter 1 of 2018, says CBRE South Asia Pvt Ltd in its annual Global Prime Office Occupancy Costs survey.
The report, tracks the cost of leasing prime office space globally and as per the report, New Delhi's Connaught Place - CBD retains its ninth position in the list as last year and the office occupancy cost is valued at Rs 9,869 per sq ft.
Mumbai's Bandra Kurla Complex and Nariman Point Central Business District ranked at 27th and 40th positions respectively. In the given position, the current annual prime rent of BKC is valued at Rs 6,216 per sq ft and the CBD Nariman Point is valued at Rs 4,687 per sq ft.
"Indian markets continued to have greater investment grade space in the CBDs of the different cities as prominent domestic and global corporates continued to favour investment grade space for setting up front offices in these cities. Commercial office market remains a strong growth propeller for the real estate sector and we are excited that Delhi, being a prime market, continues to witness sustained activity and retains its position amongst the top-10 most expensive markets in the world," said Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
Highlighting Asia's performance in the prime office space leasing segment, the report concluded that six of the world's 10 most expensive office markets are found in Asia. For the second year, Hong Kong's Central district retained the top spot as the world’s most expensive market for prime office rents, with the prime occupancy costs valued at Rs 22,075 per sq ft.
The report underlines the growing significance of talent acquisition race, driving the prime occupancy cost to newer heights. This combined with limited supply and moderate construction pipelines in most cities are the driving forces behind the price growth.
Top 10 Most Expensive Markets
(In US$ per sq. ft. per annum)
| 1 | Hong Kong (Central), Hong Kong | 322.00 |
| 2 | London (West End), United Kingdom | 222.70 |
| 3 | Hong Kong (Kowloon), Hong Kong | 208.67 |
| 4 | New York (Midtown- Manhattan), US | 196.89 |
| 5 | Beijing (Finance Street), China | 187.77 |
| 6 | Beijing (CBD), China | 177.05 |
| 7 | New York (Midtown- South Manhattan), US | 169.86 |
| 8 | Tokyo (Marunouchi/Otemachi), Japan | 167.82 |
| 9 | New Delhi (Connaught Place-CBD), India | 143.97 |
| 10 | London (City), United Kingdom | 139.75 |
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