Connaught Place 9th Most Expensive Office Location in the World: Report

New Delhi: New Delhi's Connaught Place (CP) is the ninth most expensive office location in the world with an annual rent of nearly $144 per sq ft, according to property consultant CBRE.

CP, located in the heart of the national capital, was at the ninth position even last year.

In its annual Global Prime Office Occupancy Costs survey, CBRE tracks the cost of leasing prime office space globally. For the second year, Hong Kong's Central district retained the top spot as the world's most expensive market for prime office rents, with the prime occupancy costs valued at $322 per sq.ft.

"New Delhi's Connaught Place - central business district (CBD) retains its ninth position in the list as last year and the office occupancy cost is valued at $143.97 per sq ft," the report said.

Mumbai's Bandra Kurla Complex and Nariman Point CBD slipped to 27th and 40th positions, respectively. Bandra Kurla Complex (BKC) was ranked 26th and Nariman Point at 37th in 2018 ranking. The current annual prime rent of BKC is valued at $90.67 per sq. ft and the Nariman Point CBD is valued at $68.38 per sq ft.

Indian markets continued to have greater investment grade space in the CBDs of the different cities as prominent domestic and global corporates continued to favour investment grade space for setting up front their front offices in these cities," said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE. The commercial office market remains a strong growth propeller for the real estate sector, he added.

"Delhi, being a prime market, continues to witness sustained activity and retains its position amongst the top 10 most expensive markets in the world," Magazine said.

CBRE highlighted that six of the world's 10 most expensive office markets are found in Asia. London's (West End) is ranked 2nd, followed by Hong Kong (Kowloon) and New York (Midtown Manhattan). Beijing's (Finance Street) is at the fifth position on the list.

In its report, CBRE underlined the growing significance of talent acquisition race, driving the prime occupancy cost to newer heights. "This, combined with limited supply and moderate construction pipelines in most cities, are the driving forces behind the price growth," it added.

The report also suggests very minimal shifts in the Top 10 Most Expensive Market globally, with most countries demonstrating a firm hold on their global positioning as last year.