rental values," Cushman & Wakefield South Asia Executive Managing Director Sanjay Dutt said.
The new master plan for New Delhi by the Delhi Development Authority has not provisioned for any rapid growth of office space within the city leaving very limited choice, he added.
Within Asia Pacific, the report said that Indian cities captured top positions in the largest rental growth chart, with New Delhi ranking 2nd -- recording an rental escalation of 25 per cent over last year.
Chennai CBD saw the 3rd highest rental growth in Asia followed by Bengaluru CBD at 5th position, Pune CBD at 7th and Kolkata CBD at 8th showing positive annual rental growth over previous years.
Connaught Place in New Delhi world's fourth most expensive market for office space
(Reuters) London elbowed its way past Hong Kong to regain the title as the world's most expensive market in which to rent office space, while Rio de Janeiro jumped to the No. 3 spot from No. 8, according to a report by global real estate services firm Cushman & Wakefield. New Delhi's Connaught Place was fourth on the list.
It was the first time since 2008 that London took the top spot. Competition for the scarce high quality office space in London fueled office rents by 2 percent in the city's West End bolstering rents sufficiently to leapfrog over Hong Kong, according to the report on Tuesday. Office rents in the West End are expected to continue to grow as the economy improves, Cushman & Wakefield said.
At 2,137 euros per square metre, or $262 per square foot, London's occupancy cost, which includes taxes and charges for cleaning and other services, are more than twice those of Paris, New York and Moscow.
Hong Kong's central business district dropped to second place. But the Zona Sul area of Rio de Janeiro barreled its way into the top three of the world's most expensive office locations, with rents up 43 percent over last year, the report said.
Globally, prime offices building rent rose by 3 percent, the report said. South America, particularly Brazil and Colombia, accounted for much of that growth, while many markets suffered