Connaught Place world’s 9th most costly office location: CBRE report
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New Delhi: Delhi’s Connaught Place is the world’s 9th most expensive office location with annual prime rent of $105.71 per sq ft, says property consultant CBRE.
Mumbai’s Bandra Kurla Complex (BKC) is at 19th position while the central business district (CBD) of Nariman Point is at 30th place in the CBRE’s Global Prime Office Rents report.
With annual prime rent of $264.27 per sq ft, Hong Kong (Central) is the world’s most expensive office Market. Beijing (Finance Street) and Hong Kong (Kowloon) are placed at 2nd and 3rd positions, respectively. Beijing (CBD) is ranked 4th in the list, followed by London (West End), New York (Midtown Manhattan), Tokyo (Marunouchi/Otemachi), Sanghai (Pudong). Moscow is at 10th place.
The Central Business District (CBD) of Connaught Place is at 9th position in the list of most expensive prime office markets in the world, with a prime office rent of $105.71 per sq ft per annum at the end of 2016, the report said.
“India’s commercial real estate has continued to see positive traction in the last two years. It continues to be a preferred destination for global corporates,” CBRE chairman (India and South East Asia) Anshuman Magazine said.
The supply of quality office space at competitive rates make the key markets in the country attractive looking to set up or expand their operations. About Connaught Place, Magazine said it is still a sought after location for office space despite limited space.
“Its location in the heart of India’s capital, coupled with great infrastructure and connectivity to other parts of the city, means it is the ideal location for any business to be in,” he added. The semi-annual report provides a snapshot of prime office rents in 121 markets tracked by CBRE Research. It identifies key trends at the top end of the office market that drive increases or decreases in rent.
In this edition of report, CBRE has taken only prime rents and not total occupancy cost, so the rankings are not comparable with the report released in June 2016. Connaught Place was at 7th position and Mumbai BKC was at 19th place in the last report based on occupancy cost that includes prime rent plus other charges.
Asia Pacific dominated the most expensive office markets list with seven cities making it in the list of top 10 most expensive markets. The prime rent growth in the region averaged 1.8% and was strongest in gateway cities. Technology start-ups have played a key role in the fastest-growing markets in Asia Pacific, such as Bangalore, Sydney, Bangkok and Auckland.
The 2017 study highlights that focus is firmly on growth with prime rents rising in 62 markets, stable in 32 markets and decreasing in 27. Rents have increased on average by 2.3 per cent globally. EMEA performed strongest with an average of 3.7% growth.