AT
7TH PLACE, DELHI’S CONNAUGHT PLACE MORE EXPENSIVE THAN NEW YORK, SHANGHAI
OFFICE MARKET
·
Mumbai’s BandraKurla Complex in 19th position
With annual occupancy cost of US$149.71 per sqft, New
Delhi’s Central Business District (CBD) of Connaught Place ranks as the seventh
most expensive prime office market in the world. Mumbai’s
Alternative Business District of BandraKurla Complex (BKC) is at 19th
position and the city’s Central Business District of Nariman Point is at 34th
position, according to the latest edition of CBRE
Research’s Global Prime
Office Occupancy Costs bi-annual survey
released today.
Global prime office occupancy
costs—which reflect rent, plus local taxes and service charges for the
highest-quality, prime office properties—rose 2.4% year-on-year. In Asia
Pacific, prime office occupancy costs are growing at a faster pace than
average, up 2.7% year-over-year. A few key Southeast Asian markets registered
decreases, including Singapore and Jakarta.
Anshuman Magazine, CMD, CBRE South
Asia,
said, “Over the past year, the commercial real estate market in India has
witnessed positive movement. At rank seven, Connaught Place (CP) continues to attract
occupiers and witnessessteady leasing activity for front office space. Its
central location and ease of connectivity continues to attractbig corporates –
especially banks, other financial institutions and engineering firms. Overall, India
continues to be a preferred destination for various multinationals to expand
their current operations or to set up their offices due to adequate supply of
quality office space.”
Hong Kong (Central) became the
world’s highest-priced office market with an overall prime occupancy costs of
US$290 per sq. ft. per annum. Asia continued to dominate the list of the world’s
most expensive office locations, accounting for seven of the top ten markets,
according to the survey, Beijing
(Finance Street) (US$188 per sq. ft.), Beijing (Central Business District
(CBD)) (US$182 per sq. ft.) and Hong Kong (West Kowloon) (US$179 per sq. ft.)
rounded out the top five positions. Apart from New Delhi (Connaught Place -
CBD), Tokyo (Marunouchi/Otemachi), and Shanghai (Pudong) also featured in the
top ten list.
Source:
CBRE Research, Q1 2016
The study revealedthat 22 markets
moved more than three rankings upwards with 41% of these in Asia Pacific. The
majority of these markets (72%) are not global gateway cities, indicating that
as rents continue to rise in line with economic growth, cost-conscious
companies are seeking space in the less expensive markets. About 41% of the
markets moving up are in Asia Pacific, which indicates that the region is still
growing despite the economic slowdown in China.
CBRE tracks occupancy costs for
prime office space in 126 markets around the globe. Of the top 50 most
expensive markets, 20 were in Asia Pacific, 20 in Europe, the Middle East and
Africa (EMEA), and 10 in the Americas.
Notes
1. The GlobalPrime Office Occupancy Costs
report is a survey of office occupancy costs for prime office space in 126
cities worldwide.
2. The latest
survey provides data on office rents and occupancy costs as of March 31, 2016.
3. The Largest Annual Changes rankings are based upon occupancy costs in
local currency and measure. The Most Expensive ranking is based upon occupancy
costs in US$ per sq. ft. per annum.
4. The figures
given in this release refer to occupancy cost. This represents rent, plus local
taxes and service charges. The occupation cost figures have also been adjusted
to reflect different measurement practices from market to market.
5. Due to
methodology changes, comparisons with figures in previously released reports
are not valid.
About CBRE
Group, Inc.
CBRE
Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in
Los Angeles, is the world’s largest commercial real estate services and
investment firm (in terms of 2015 revenue). The Company has more than 70,000
employees (excluding affiliates), and serves real estate owners, investors and
occupiers through more than 400 offices (excluding affiliates) worldwide.
CBRE
offers strategic advice and execution for property sales and leasing; corporate
services; property, facilities and project management; mortgage banking;
appraisal and valuation; development services; investment management; and
research and consulting. Please visit our website at www.cbre.com.
Contact:
Amritha Marshall
General Manager, Corporate Communications India
91 124 4659 700
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