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Renting office in Indian cities is costlier than New York

Renting office in Indian cities is costlier than New York
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First Published: Thu, May 24 2007. 05 00 PM IST
Updated: Thu, May 24 2007. 05 00 PM IST
PTI
New Delhi: Finding an office space in Lutyen’s Delhi has become harder with the national capital recording the second highest rental surge among all the major cities of the world.
Besides New Delhi, Mumbai and Bangalore have also made to the list of world’s 50 fastest growing office rental markets, while outpacing big names like New York, Singapore and Shanghai, a list compiled by real estate consultancy firm CB Richard Ellis (CBRE) shows.
New Delhi and Mumbai have also made to the world’s 10 most expensive office markets, ahead of places like New York, Paris, Singapore and Hong Kong.
Abu Dhabi led the list of markets with fastest growing office rents, followed by New Delhi at second position, Mumbai at sixth and Bangalore at 16th.
Besides, Mumbai has also made to the world’s five most expensive markets, after London’s West End, the City of London and Tokyo’s Innwer and Outer Central Five Wards at the top four positions.
New Delhi’s Connaught Place was the only newcomer to the list of top 10 most expensive markets with an occupation cost of $116.19 (Rs4,714) per square foot a year.
“Having the second fastest rental increase in the world during the past one year is not a matter to be proud of. It clearly indicates a severe lack of supply as far as office space in Delhi goes,” CB Richard Ellis Managing Director Anshuman Magazine said.
“This will be a deterrent in attracting investments to the city. I wish the Indian cities were amongst the top 10 in infrastructure and investment,“ Anshuman added.
Mumbai jumped two place to reach the fifth position in the year ended March 2007 with an occupation cost of $138.41 per square foot, while New Delhi was ranked seventh.
New Delhi witnessed 79% growth year-over-year growth in office rents, while Mumbai had 45% rent growth in last 12 months and Bangalore saw a growth of 31% during the period under consideration.
The oil-rich Abu Dhabi saw rents increasing by 103% over the past year.
Of the 176 office markets, which were monitored in the survey in terms of global market rents, 90% showed positive growth in the 12 months ending March 2007.
The global market rents is a survey of office occupation costs, which includes rent, local taxes and service charges in 176 cities worldwide and the rankings are based upon occupancy costs in local currency and measure.
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First Published: Thu, May 24 2007. 05 00 PM IST
More Topics: Money Matters | Real Estate |