Yes, you've heard it right. New Delhi's Connaught Place is the world's 4th most expensive office location, gaining one position from last year in the annual survey done by global real estate consultant Cushman & Wakefield.
The report ranks locations across 63 countries to compare the most expensive office destination across the world.
Sanjay Dutt, executive MD, South Asia, Cushman & Wakefield said, "India’s corporate office space has been limited with majority of the development being in the IT/ITeS space. Therefore locations that do offer corporate office space such as CBD, off CBD, and select micro markets in the suburban districts have witnessed high rental values. Demand for corporate office locations have remained buoyant especially from sectors like BFSI, engineering and consulting firms, media and entertainment amongst others leading to increase in rental values for these locations."
The global markets and the Indian office markets have been affected negatively by the economic slowdown in European and American continent. There was a 23% decline in absorption in 2012 in India.
Most corporates are cautious and have concentrated on increasing efficiency of their existing office spaces, alternate workplace strategy with remote or flexible work stations or hours. Relocation and consolidation at attractive terms is helping current space take up.
Connaught Place registered a growth of approximately 25% in rental values over the last year to charge R 403 /sf/ month.
Given that it is one of the oldest established office centres in India and is in proximity to other establishments like government organisations, trading centres and retail location, the demand for quality office space has been high. The location also remains high on priority for sectors such as BFSI, consulting, trade, media.
Within APAC, Indian cities captured top positions in the largest rental growth charts, with New Delhi ranking 2nd recording an rental escalation of 25% over last year.
Chennai CBD (13%) saw the 3rd highest rental growth in Asia followed by Bengaluru CBD (8%) at 5th position, Pune CBD (7%) at 7th and Kolkata CBD at 8th (6%) showing positive annual rental growth over previous years.