Economy

Connaught Place in New Delhi is the Tenth Most Expensive Office Market In the World: CBRE

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 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)

Rank Market Prime Rent
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%.

CBRE tracks office rents for prime office space in 121 markets around the globe. Of the top 50 most expensive markets, 20 were in Asia Pacific, 18 were in EMEA and 12 were in the Americas.

Notes

  • The Global Prime Office Rents report is a survey of office rents for prime office space in 121 cities worldwide.
  • The survey provides data on office rents as of June 30, 2017.
  • 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 Rents survey is performed semi-annually in the first and third quarter of the year.

 

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