CBRE South Asia Pvt. Ltd, India’s leading Real Estate Consulting firm today announced the findings of its semi-annual Global Prime Office Rents survey. According to the survey, Delhi’s Connaught Place is the world’s 10th most expensive office location with an annual prime rent of USD 111 per sq ft,. The ranking has fallen by one position, moving down to tenth from ninth in March 2017. Mumbai’s Bandra Kurla Complex (BKC) took 16th position with an annual prime rent of USD 84.10 per sq ft, while the central business district (CBD) of Nariman Point took 30th place with an annual prime rent of USD 64.27 per sq ft, in the CBRE’s Global Prime Office Rents report.
Asia Leads List of Most Expensive Prime Office Rents. The study also found that markets in the Americas and EMEA showed the most consistent growth in rent.
Anshuman Magazine, Chairman – India & South-East Asia, CBRE said, “Commercial office market remained a bright spot for the real estate sector in the country. Steady lease rentals, high absorption levels and global investor interest continue to bring life into India’s commercial real estate sector with Delhi and Mumbai continuing their dominance in the overall space take-up”
“Connaught Place over the years has emerged as one of the most sought after office spaces in the world where the global and regional head offices of World’s major companies reside. In spite of having limited supply of prime office space, its location in the heart of India’s capital, coupled with great infrastructure and connectivity to other parts of the city, makes it to be an ideal location for any business to be in,” he added.
Asia dominated the top ten most expensive markets in the world, with Hong Kong holding two of the top three most expensive office markets. Hong Kong’s (Central) overall prime office rent of US$269 per sq. ft. per year was followed by Beijing (Finance Street) at US$174 per sq. ft. and Hong Kong (West Kowloon) at US$164 per sq. ft. New York (Midtown Manhattan) and Beijing (CBD) rounded the top five, with Tokyo (Marunouchi/Otemachi), Shanghai (Pudong) and New Delhi (Connaught Place – CBD) also featuring in the top ten most expensive list.
|Top 10 Most Expensive Markets
(In US$ per sq. ft. per annum)
|1||Hong Kong (Central), Hong Kong||269.26|
|2||Beijing (Finance Street), China||174.07|
|3||Hong Kong (West Kowloon), Hong Kong||163.57|
|4||New York (Midtown Manhattan), US||153.50|
|5||Beijing (CBD), China||151.87|
|6||London (West End), United Kingdom||136.38|
|7||Tokyo (Marunouchi/Otemachi), Japan||132.09|
|8||Shanghai (Pudong), China||120.11|
|9||New York (Midtown-South Manhattan), US||113.53|
|10||New Delhi (Connaught Place – CBD), India||110.85|
Source: CBRE Research, H1 2017
Global prime office rents—which reflect rent, excluding local taxes and service charges for the highest-quality, prime officeproperties—rose 2% year-over-year, with the Americas performing the strongest, up 3.4%. Asia Pacific was up 1.2%