Connaught Place is amongst the top 10 Most Expensive Office Market In the World: CBRE

Connaught Place in New Delhi moves up one place to the ninth position, from last year as Most Expensive Office Market in the World
Mumbai (BKC) slips by ten places to 26th; Nariman Point declines to 37th position from 30th last year
Hong Kong continues its position to be the most expensive location in the world for the second consecutive year

New Delhi, July 11, 2018 – CBRE South Asia Pvt. Ltd, India’s leading Real Estate Consulting firm, today announced the findings of its annual Global Prime Office Occupancy Costs survey. As per the survey’s findings, Delhi’s Connaught Place moved one notch up to be the ninth most expensive office location with an annual prime rent of USD 153.26 per sq. ft from last year’s 10th most expensive office location. Meanwhile Mumbai’s Bandra Kurla Complex (BKC) moved down to the 26th position with an annual prime rent of USD 96.51 per sq. ft. The central business district (CBD) of Nariman Point stands at the 37th position resulting in an annual prime rent of USD 72.80 per sq. ft.

Global prime office occupancy costs—which reflect rent, plus local taxes and service charges for the highest-quality, “prime” office properties—rose 2.4 percent year-over-year, with the Americas up 3.2 percent, EMEA up 2 percent and Asia Pacific up 1.7 percent.

The survey highlights that for the first time in this cycle, prime office occupancy cost growth was consistent across all regions in the past 12 months. Global economic growth has stimulated robust leasing activity, particularly in EMEA and APAC regions and occupancy costs grew at a faster rate than last year. Also, Americas despite recording a mild slowdown period, witnessed the overall fastest increase in annual costs at 3.2 percent.

Anshuman Magazine, Chairman – India & South-East Asia, CBRE said, “Strong demand from finance, technology and the e-commerce sectors has fueled the growth momentum in prime occupancy costs from last year & Commercial office market remains a strong growth propeller for the real estate sector. Delhi, being a prime market, continues to witness significant activity and has moved one step ahead to the 9th position owing to stable vacancy, rents and absorption. We are optimistic about the Mumbai market and are expecting an upswing in the coming months”.

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Globally, Hong Kong (Central) at USD 306.57 per sq. ft and London (West End) at USD 235.01 per sq. ft continued to lead the ranking propelled by banking and finance sectors. Flexible space operators were also found to be highly active in the Hong Kong market. The market with the steepest rise, Durban experienced strong demand from business-process outsourcing companies. Overall, the APAC region witnessed a 1.7% increase in occupancy cost this year from around 1.2% in 2017.

Top 10 Most Expensive Markets

(In US$ per sq. ft. per annum)

Rank

Market

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Prime Rent

1

Hong Kong (Central), Hong Kong

306.57

2

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London (West End), United Kingdom

235.01

3

Beijing (Finance Street), China

200.91

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4

Hong Kong(Kowloon), Hong Kong

189.56

5

Beijing(CBD), China

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189.44

6

New York (Midtown- Manhattan)

183.78

7

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New York- (Midtown-South Manhattan)

171.56

8

Tokyo (Marunouchi/Otemachi), Japan

171.49

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9

New Delhi (Connaught Place-CBD), India

153.26

10

London (City), United Kingdom

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144.95

Source: CBRE Research, 2018

CBRE tracks office rents for prime office spaces in 120 markets around the globe.

Notes

The Global Prime Office Occupancy Costs report is a survey of office rents for prime office space in 120 cities worldwide.
The survey provides data on office rents as of Q1,2018.
The Most Expensive ranking is based upon prime office rents in US$ per sq. ft. per annum.
The figures given in this release refer to office rents. This represents rent on a net-basis (exclusive of service charges and taxes). The office rent figures have also been adjusted to reflect different measurement practices from market to market.
Due to methodology changes, comparisons with figures in previously released reports are not valid.
CBRE’s Global Prime Office Occupancy Costs survey is performed semi-annually in the first and third quarter of the year

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