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Consulting firm CBRE reports that Delhi's Connaught Place has moved down to become the world's seventh most expensive office destination.
Global Rankings
According to CBRE (Commercial Real Estate Service), New Delhi’s CBD, specifically Connaught Place, now holds the 7th position among the most expensive major office markets worldwide. This is based on an annual occupancy cost of $149.71 per square foot.
With prime occupancy costs of $290 per square foot per annum, Hong Kong has emerged as the highest-priced office market. Following closely is London Central, with a yearly occupancy cost of $262.29. Beijing Finance Street is in 3rd place, Beijing Central Business District is in 4th, and Hong Kong West Kowloon is ranked 5th.
The top 10 most expensive office markets include Tokyo, London, New York, and Shanghai.
In the rankings released by CBRE last December, London Central West End held the top spot, while Delhi’s Connaught Place was in 6th position.
Expert Opinion
Anshuman Magazine, Chairman and Managing Director of CBRE South Asia, stated that the commercial real estate market in India has experienced positive growth over the past year. He noted that Connaught Place, at 7th rank, continues to attract tenants and sees significant sublease activity for front office spaces.
Mr. Magazine further elaborated that Connaught Place's central location and convenient connectivity attract prominent corporate offices, particularly financial institutions such as banks, and engineering firms.
He added that the satisfactory supply of quality space in India continues to make it an appealing destination for many multinational corporations (MNCs) looking to expand operations or establish new offices.
Market Trends
In the Asia Pacific region, major office occupancy prices have increased more rapidly than the global average. Some Southeast Asian markets, including Jakarta and Singapore, have seen a decline.
Commercial Real Estate Service tracks occupancy costs for prime office spaces in 126 markets globally. Among the top 50 most expensive markets, 20 are located in Asia Pacific, 20 in Europe, and 10 in the Americas.