At seventh place, CP costlier than New York, Shanghai: CBRE report

With annual occupancy cost of $149.71 per sqft, the central business district of Connaught Place in New Delhi ranks as the seventh most expensive prime office market in the world. Bandra Kurla Complex in Mumbai is at 19th position and Nariman Point is at 34^th, according to the latest edition of CBRE Research’s Global Prime Office Occupancy Costs bi-annual survey released on Wednesday.

The global prime office occupancy costs — which reflect rent, plus local taxes and service charges for the highest-quality, prime office properties — rose 2.4 per cent year-on-year. In Asia Pacific, the prime office occupancy costs are growing at a faster pace than average, up 2.7 per cent year-over-year. A few key Southeast Asian markets registered decreases, including Singapore and Jakarta.

Anshuman Magazine, CMD, CBRE South Asia, said, “Over the past year, the commercial real estate market in India has witnessed positive movement. At rank seven, Connaught Place (CP) continues to attract occupiers and witnesses steady leasing activity for front office space.  Its central location and ease of connectivity continues to attract big corporates – especially banks, other financial institutions and engineering firms. Overall, India continues to be a preferred destination for various multinationals to expand their current operations or to set up their offices due to adequate supply of quality office space.”

Hong Kong (Central) became the world’s highest-priced office market with an overall prime occupancy cost of US$290 per sq. ft. per annum. Asia continued to dominate the list of the world’s most expensive office locations, accounting for seven of the top ten markets, according to the survey. Beijing (Finance Street) ($188 per sq. ft.), Beijing (CBD) ($182 per sq. ft.) and Hong Kong (West Kowloon) ($179 per sq. ft.) rounded out the top five positions. Apart from New Delhi (Connaught Place – CBD), Tokyo (Marunouchi/Otemachi), and Shanghai (Pudong) also featured in the Top Ten list.