CBRE South Asia’s latest Global Prime Office Rents survey shows New Delhi's Connaught Place as the world's 10th most expensive office location, commanding an annual prime rent of $111 per sqft. The ranking has slipped by one position, down to tenth from ninth in March 2017. As per the survey, Hong Kong is the world’s costliest office market.
Mumbai's Bandra-Kurla Complex (BKC) occupies 16th position with an annual prime rent of $84.10 per sqft, while the central business district (CBD) of Nariman Point took 30th place with an annual prime rent of $64.27 per sqft.
“Commercial office market remained a bright spot for the real estate sector in the country. Steady lease rentals, high absorption levels and global investor interest continue to bring life into India’s commercial real estate sector with Delhi and Mumbai continuing their dominance in the overall space take-up,” said Anshuman Magazine, Chairman – India & South-East Asia, CBRE.
According to him, Connaught Place has emerged as one of the most coveted office space in India where the global and regional head offices of world’s major companies reside. Even though it has limited supply of prime office space, its location in the heart of India’s capital, coupled with excellent infrastructure and connectivity to other parts of the city, makes it an ideal location for any business to be in, he said.
Asian cities led the list of most expensive prime office rents. The study also found that markets in the Americas and EMEA showed the most consistent growth in rent.
Asia dominated the top ten most expensive markets in the world, with Hong Kong holding two of the top three most expensive office markets. Hong Kong’s (Central) overall prime office rent of $269 per sqft per year was followed by Beijing (Finance Street) at $174 per sqft and Hong Kong (West Kowloon) at $164 per sqft New York (Midtown Manhattan) and Beijing (CBD) rounded the top five, with Tokyo (Marunouchi/Otemachi), Shanghai (Pudong) and New Delhi (Connaught Place - CBD) also featuring in the top ten most expensive list.