Delhi’s Connaught Place Ninth Most Expensive Office Location In The World, Says CBRE
New Delhi's Connaught Place is the ninth most expensive office location in the world with an annual rent of nearly $144 per square feet, according to a report by property consultant CBRE Group Inc.
Hong Kong’s central district retained the top spot as the world’s most expensive office location, with the prime occupancy costs valued at $322 per square feet. London's (West End) is ranked 2nd, followed by Hong Kong (Kowloon) and New York (Midtown Manhattan). Beijing's (Finance Street) is at the fifth position on the list.
Mumbai's Bandra Kurla Complex and Nariman Point slipped to 27th and 40th positions, respectively. BKC was ranked 26th and Nariman Point at 37th in the 2018 rankings. The current annual prime rent of BKC is valued at $90.67 per square feet while Nariman Point's is valued at $68.38 per square feet.
Six of the world's 10 most expensive office markets are now in Asia, the CBRE report showed.
In its annual Global Prime Office Occupancy Costs survey, CBRE tracks the cost of leasing prime office space globally.
"New Delhi's Connaught Place—central business district retains its ninth position in the list as last year and the office occupancy cost is valued at $143.97 per square feet," the CBRE report said.
“Indian markets continued to have greater investment grade space in central business districts of its cities as prominent domestic and global corporates continued to favour investment grade space for setting up front their front offices in these cities," said Anshuman Magazine, chairman and chief executive officer (India, South East Asia, Middle East and Africa) at CBRE Group Inc.
The commercial office market remains a strong growth propeller for the real estate sector, said Magazine. "Delhi, being a prime market, continues to witness sustained activity and retains its position amongst the top 10 most expensive markets in the world.”
The CBRE report underscored 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," it added.
The report also suggested very minimal shifts in the Top 10 most expensive office market globally, with most countries demonstrating a firm hold on their global positioning as last year.