Delhi’s Connaught Place 6th most expensive office market globally: CBRE survey
Mumbai: Delhi’s Connaught Place is the sixth most expensive office market in the world, overtaking business destinations in Tokyo and New York, according to the latest report by global consultant firm CBRE.
As per CBRE’s bi-annual Global Office Occupancy Costs survey, Mumbai’s Bandra Kurla Complex (BKC) has dropped by three spots to the 18th position, while Nariman Point is ranked at 32nd, down from 30th in the last survey.
Connaught Place, with an occupancy cost of $151.27 per sq. ft per annum, has continued to feature in the top 10 global list of most expensive office markets, the report said.
Annual occupancy cost in BKC and Nariman Point stand at about $94 per sq. ft and 72.71 per sq. ft, respectively.
Occupancy costs constitute rent, local taxes and service charges of the place.
“The drop in ranking for Mumbai’s BKC is owing to a marginal decline reported in other cost components such as property tax and service charges, even as overall rents have mostly remained stable,” said Anshuman Magazine, chairman and managing director, CBRE South Asia Pvt. Ltd.
London’s West End remained the world’s highest-priced office market for the second straight year, while business destinations in Hong Kong and Beijing took four of the top five slots in the rankings.
The report said that prime occupancy costs have increased 2.4% annually across the globe, as the world economy continues to improve gradually, while the expanding service sector has boosted demand for space in top quality properties.
In another report by global real estate consultant Cushman & Wakefield, Delhi’s Khan Market has moved up by two spots to the 24th position in the global list of most expensive retail locations.
Despite witnessing no change in the rental values of the location, Khan Market gained in rankings due to marginal changes in the rankings of other countries, the report said.
“The micro market (Khan Market) has been one of the most expensive markets in India for more than five years as demand for retail space has remained steady on account of its location and current occupier profile,” the Cushman & Wakefield report said.
New York’s Upper 5th Avenue with a rental value of $3,500 per sq. ft per year continued to occupy the top spot for the second year.