“Delhi's Connaught Place moved one notch up to be the ninth most expensive office location, with an annual prime rent of $153.26 per square feet from last year's tenth most expensive office location,” CBRE said. CP had a monthly rent of $105.71 per sq ft last year.
The consultant released its annual Global Prime Office Occupancy Costs survey. The cost reflects rent, plus local taxes and service charges for the highest-quality prime office properties.
CBRE’s chairman, India and Southeast Asia, Anshuman Magazine, said, “Delhi, being a prime market, continues to witness significant activity and has moved one step ahead to the ninth position owing to stable vacancy, rents and absorption.” He expressed optimism about the Mumbai market and expected an upswing in the coming months.
According to the report, Hong Kong (Central) is at the first position with an annual rent of $306.57 per square feet, followed by London (West End), Beijing (Finance Street) in China, Hong Kong (Kowloon) and Beijing (CBD) in China.
New York (Midtown- Manhattan) ranked sixth with an annual rent of $183.78 per square feet, while New York (Midtown-South Manhattan) is at seventh position commanding rent of $171.56 per square feet.
In the top 10 list, Tokyo (Marunouchi/Otemachi), Japan is at the eighth position and London (City), UK, is at the 10th rank.
Global prime office occupancy costs rose 2.4 per cent year-over-year. The cost in America was up 3.2 per cent; whereas in Europe and the Middle East and Africa (EMEA) it was at 2 per cent, while the Asia Pacific it was 1.7 per cent. The survey highlighted that prime office occupancy cost growth was consistent across all regions in the past 12 months.
On the Indian commercial real estate market, Magazine said, “Strong demand from finance, technology and the e-commerce sectors has fuelled the growth momentum in prime occupancy costs from last year and commercial office market remains a strong growth propeller for the real estate sector.”