Connaught Place, located in the heart of the National Capital, is the fifth most expensive office destination in the world, according to global property consultant CBRE.
Hong Kong (Central) tops the list of world's most expensive office markets list with an annual occupancy cost of USD 246.3 per sq ft, followed by London's West End, Tokyo's Marunouchi Otemachi, BeijingŅs Central Business District (CBD) and New Delhi's CBD.
"India continued to feature in the list of World's most expensive office markets, with New Delhi (Connaught Place CBD) moving up from 9th position to 5th position (with an overall occupancy cost of USD 183.30)," according to CBRE's semi-annual Prime Office Occupancy Costs survey.
Mumbai (Bandra Kurla Complex) is at 11th position in the list, while Mumbai's Nariman Point ranks 25th. In July, BKC was at 13th position and Nariman Point ranked 20th.
A central location and excellent connectivity make New Delhi (Connaught Place- CBD) an attractive, albeit expensive, office market for corporate occupiers, the consultant said.
"In prime CBD Locations the supply of space is extremely limited with almost no new supply expected in the near future.
This is specially true for quality office space which has led to occupancy cost remaining high," CBRE South Asia Chairman and Managing Director Anshuman Magazine said.
CBRE tracks occupancy costs for prime office space in 133 markets around the world. Of the top 50 Ņmost expensive markets, 19 are in EMEA (Europe, the Middle East and Africa), 18 are in Asia-Pacific and 13 in the Americas. The occupancy costs increased in 74 markets, fell in 37 office markets and had no change in 22 markets.
The dominance of Asia-Pacific continued, with the region accounting for six out of the top 10 most expensive office markets.
San Francisco (Downtown) in US topped the list of largest increases in the occupancy cost year-on-year with 36.4 per cent rise.
Despite economic headwinds, occupancy costs increased by an average of 2.1 per cent worldwide over the past year, led by the Americas with a 5.2 per cent annual increase and Asia Pacific with a 2.6% increase.
EMEA continued to be hindered by economic recession in much of Europe and recorded a 0.4 per cent decrease in prime occupancy costs.