By IANS,
New Delhi : Despite slow growth in rentals, Mumbai and Delhi remain among the world’s 10 most expensive cities to rent office space in, according to CB Richard Ellis Group’s semi-annual global market rents survey, results of which were announced here Friday.
However Mumbai, which was the world’s second most expensive office market during the last survey in November 2007, is now in fourth place, though its rental of $210.97 per sq ft is still 41 percent higher than it was last November.
Moscow, where office rentals have risen 93 percent since last November to $232.37 per sq ft, is now at second place instead.
Delhi is now in seventh place, from eighth last November. Office rentals in Delhi have risen 15.3 percent during this period to $145.16 per sq ft, the survey said.
The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended March 31, 2008.
London’s West End has retained its position as the world’s most expensive office market at $299.54 per sq ft.
Two areas in Tokyo occupied two of the other top-five spots – Inner Central Five Wards and Outer Central Five Wards – both at $220.25 per sq ft.
“The drop (in Mumbai’s ranking) is not due to rentals in Mumbai falling, but because of a significant increase in rentals in London and Moscow,” said Anshuman Magazine, chairman and managing director, CB Richard Ellis, South Asia.
“The rental is still very high and is reflective of the tight supply of prime office space in Mumbai and Delhi and of demand remaining constantly active,” he added.
Vietnam’s Ho Chi Minh City had the fastest-growing occupancy costs during this period at $85.84 per sq ft, up 94 percent.
Overall, EMEA (Europe, Middle East and Africa) dominated the list of markets with the fastest growing occupancy costs, accounting for five of the top 10 and 19 of the top 50 markets.
Among the most expensive markets, Singapore and Dubai were newcomers to the top 10. Singapore ranked ninth with an occupancy cost of $139.31 per sq ft while Dubai debuted at number 10 with an occupancy cost of $128.49 per sq ft.