Connaught Place, the marketplace located in Delhi has been ranked fifth in the list of world’s most expensive office market due to its strong demand amid limited supply as per the CBRE report.
The reason of Connaught place being one of the most expensive markets is the Strong demand coupled with Connaught Place’s central location, excellent access to key regional markets and limited availability of prime office space.
The top three Expensive markets are:
1. Hong Kong (Central) with annual occupancy costs of 235.23 dollars per sq ft topped the most expensive list for the third consecutive time.
2. London’s West End, Beijing’s Finance Street
3. Beijing’s Jianguomen.
Connaught Place – the Central Business District (CBD) is placed at the 5th position with an overall occupancy cost of 178.96 dollars per sq ft per annum. Bandra Kurla Complex (BKC) and Nariman Point of Mumbai are placed at 11th and 26th positions, respectively.
CBRE came to this result wit tracking of the occupancy costs for prime office space in 127 markets around the globe in its semi-annual Prime Office Occupancy Costs survey.
The most important thing that came into light is that despite a softening in the commercial office space segment in key cities in India, occupancy costs continue to remain high in prime locations.
CBRE also concluded that gap in office occupancy cost between the Central Business District CBDs such as Connaught Place and a suburb such as Gurgaon is massive. The point is supported from the fact that while Delhi is placed at 5th place, Gurgaon is at the 72nd place in the same list.
The Other Asia-Pacific markets in the top 10 include:
Hong Kong-West Kowloon (6th),Moscow (7th), Tokyo (Marunouchi/Otemachi) (8th) London’s City (9th).
New York’s Midtown Manhattan (10th) returned to the top ten markets for the first time since early 2012.