Los Angeles: Office rents rose an average 12% around the world last year, driven by worldwide economic expansion, with Mumbai increasing enough to make it the world’s fifth most expensive city, a Cushman & Wakefield study found.
The average rent in Mumbai’s Worli more than doubled to $120.15 (Rs5287) per square foot, moving its worldwide ranking up six places from No. 11 a year earlier and making it a more expensive place to rent office space than such cities as Milan, New York and Dubai. Goldman Sachs Group Inc., UBS AG and Credit Suisse First Boston all expanded in Mumbai last year, Cushman said.
“It’s the combination of the information technology industry and the financial services sector,” Ken McCarthy, managing director of research services at Cushman, said. “Those are the two that have significantly increased their demand in India for the outsourcing industry.”
That compares with a 4.3% increase in 2005, according to the Office Space Across the World study released by Cushman & Wakefield, the world’s second-largest real estate brokerage. Africa and the Middle East had the biggest increases, with rents rising 32% in the region. Rents rose in 74% of the 211 markets in the 51 countries surveyed and declined in only 6%, the New York-based real estate brokerage said.