Connaught Place is the world’s 9th costliest office market for 2nd straight year

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Published: July 11, 2019 2:34:35 AM

Besides the business district in CP, Mumbai’s Bandra Kurla Complex (BKC) and Nariman Point CBD were in the top 50 costliest office rental markets.

The 2019 report also revealed that six of the world’s top 10 most expensive office markets are in Asia.The 2019 report also revealed that six of the world’s top 10 most expensive office markets are in Asia.

The central business district (CBD) at Connaught Place in the Capital has retained the world’s ninth most costliest office space position for the second consecutive year with an annual rental of $143.97 per sq ft, or roughly around Rs 9,872 per sq ft, CBRE said in a report.

Besides the business district in CP, Mumbai’s Bandra Kurla Complex (BKC) and Nariman Point CBD were in the top 50 costliest office rental markets.

CBRE’s global prime office occupancy costs survey tracks the cost of leasing prime office space across the globe.

Mumbai’s BKC with an annual rent of $90.67 per sq ft (around Rs 6,220) is ranked 27th, while the Nariman Point CBD, ranked 40th, has a rent of $68.38 per sq ft (around Rs 4,690). Last year, BKC held the 26th position and Nariman Point was ranked at 37th.

Anshuman Magazine, CBRE’s chairman and CEO for India, South East Asia, West Asia and Africa, said the Indian markets continued to have greater investment grade space in the CBDs of different cities as prominent domestic and global corporates continued to favour investment grade space for setting up front offices in these cities.

“Commercial office market remains a strong growth propeller for the real estate sector and we are excited that Delhi, being a prime market, continues to witness sustained activity and retains its position amongst the top 10 most expensive markets in the world,” he added.

Overall, Hong Kong (Central) was the world’s most expensive office space, second year in a row, with an annual rental of $322, or around Rs 22,090 per sq ft. It was followed by London’s West End ($222.70), Hong Kong’s Kowloon ($208.67), New York’s Midtown-Manhattan area ($196.89) and the Finance Street in Beijing ($187.77), the CBRE report said.

The consultancy said rentals have risen in the past year with Asia Pacific prime office occupancy cost almost doubling to 3.3% in January-March 2019 from 1.7% in the same quarter in 2018. The 2019 report also revealed that six of the world’s top 10 most expensive office markets are in Asia.

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