The cost of Mumbai?s premium office space has inched up and it is now the fourth most expensive office space in the world, according to CB Richard Ellis (CBRE) Group. This bi-annual report tracks occupancy costs for prime office space in 176 cities around the globe. ?Mumbai, with an occupancy cost of $125.76 per sq. ft.(about Rs 5,659 psf), moved up into the top five global markets largely as a result of the recent appreciation of the rupee to the US dollar. Corporate activity in Mumbai has picked up since four to five months, taking new space and expanding,? said Anshuman Magazine, chairman & MD, CBRE South Asia. Developers have curtailed construction of premium office space. Regions like Nariman Point, Worli, Lower Parel, Bandra-Kurla Complex and Andheri are the hub for premium office spaces in Mumbai.

However, in spite of rentals moving up since December 2009, Delhi dropped out of the top 10 rankings into 11th position. ?This is due to other cities especially in Brazil moving up due to higher rental appreciation. Overall, office space supply in NCR is large which will keep the rentals stable in the medium term and we may also see a marginal drop in rentals in certain micro-markets within the NCR,? he added. London’s West End remains the world’s most expensive office market with occupancy cost at $182.94 per sq ft.