Mumbai and Delhi have found place in the list of top ten most expensive Asian office locations. Ranked 4th and 8th respectively, the occupancy costs in Mumbai and Delhi are $11,400 and $8,150 per annum per workstation. While Hong Kong once again recorded the highest level of occupancy costs in Asia Pacific ($19,730 per workstation pa), it was closely followed by Tokyo (Central 5 wards) and Seoul at second and third positions at $ 13,470 and 12,470 respectively.
Hong Kong once again recorded the highest level of occupancy costs in Asia
Mumbai and Delhi have risen in global rankings
According to a survey conducted by global property advisors DTZ, Mumbai and Delhi have risen through the global ranks and currently occupy 18th and 51st positions respectively (27th and 56th in 2006) by virtue of the expanding Indian real estate market and the booming IT/ITeS Sector. London (West End), Hong Kong and Paris occupy top three positions globally. Other cities from India featuring on the global list are Bangalore and Chennai at 117th and 123rd positions respectively.
DTZs tenth annual Global Office Occupancy Costs survey 2007 is a guide to accommodation costs in major prime office locations covering 134 business districts in 48 countries world-wide. Ranking for the survey has been focused on a per workstation basis to better reflect the costs of accommodation.
Chennai, Mumbai and New Delhi have experienced one of the largest increases in occupancy costs in Asia-Pacific in the 2007 survey with year on year growth of 37%, 34% and 23% respectively. Says Ankur Srivastava, managing director, DTZ India, All CBDs in major Indian cities have seen a limited new supply of Grade A office space in the past year.
Given the overall economic activity in India, demand for CBD space far exceeded supply and led to an overall increase in prime location occupancy costs.