Nariman Point 6th in World!
Slips Two Spots While Worli Is Ranked 10th; Hong Kong On Top
Mumbai: The city emerged as the sixth most expensive office location in the world, according to Office Space Across the World 2009, a report by global property consultants Cushman & Wakefield.
Nariman Point, the commercial business district (CBD) of India’s financial capital, however, slipped two positions from last year’s fourth rank, moving towards more cost effective rentals. It has given way to Moscow (fourth) and Dubai (fifth) on the list.
The study compares office occupancy costs in 202 key locations across 57 countries around the world. Significantly, London lost its status
as the world’s most expensive office location for the first time in nine years as rental values corrected by 23% in West End.
Honk Kong emerged as the most expensive office location in the world while Worli in Mumbai and CBD in New Delhi occupied the 10th and 12th positions, respectively.
The ranking is compiled from the location with the most expensive occupancy cost in each country monitored. Rents, which form the largest part of occupancy costs, are calculated on a net internal basis.
“With the slowdown in the global economy, many corporates eased or postponed their expansion plans in Mumbai, resulting in subdued demand for office space. As a result, Mumbai witnessed an overall vacancy of about 12% in 2008, which is significantly higher than the previous 4-5% vacancy recorded in 2007,’’ said the report.
Vacancy in this CBD inched closer to 5% in 2008 as compared to 1%-2% in 2007 on account of restrained demand and low renewals of expired lease agreements by corporates, leading to a drop in rental values at Nariman Point by 9%.
Mumbai: The city emerged as the sixth most expensive office location in the world, according to Office Space Across the World 2009, a report by global property consultants Cushman & Wakefield.
Nariman Point, the commercial business district (CBD) of India’s financial capital, however, slipped two positions from last year’s fourth rank, moving towards more cost effective rentals. It has given way to Moscow (fourth) and Dubai (fifth) on the list.
The study compares office occupancy costs in 202 key locations across 57 countries around the world. Significantly, London lost its status
as the world’s most expensive office location for the first time in nine years as rental values corrected by 23% in West End.
Honk Kong emerged as the most expensive office location in the world while Worli in Mumbai and CBD in New Delhi occupied the 10th and 12th positions, respectively.
The ranking is compiled from the location with the most expensive occupancy cost in each country monitored. Rents, which form the largest part of occupancy costs, are calculated on a net internal basis.
“With the slowdown in the global economy, many corporates eased or postponed their expansion plans in Mumbai, resulting in subdued demand for office space. As a result, Mumbai witnessed an overall vacancy of about 12% in 2008, which is significantly higher than the previous 4-5% vacancy recorded in 2007,’’ said the report.
Vacancy in this CBD inched closer to 5% in 2008 as compared to 1%-2% in 2007 on account of restrained demand and low renewals of expired lease agreements by corporates, leading to a drop in rental values at Nariman Point by 9%.
Worli witnessed a correction of approximately 13% in rental values in 2008 over the previous year. In 2007, Worli grew by 33% over 2006-07 largely due to limited supply.
The location, which was
fast emerging as a hub for industries such as banking and finance, IT/ITeS and media, among others, saw a drop in activities owing to the global slowdown and a general consensus that it had reach very high price points. “Worli recorded vacancy of approximately 7% in 2008 as against 2% recorded in 2007, it said.
In the global ranking, although rents in Hong Kong fell 4% in 2008, the much larger 23% fall in London’s West End pushed occupancy costs down further to US$ 183 per sq ft per annum. According to the report, the cost of space in Tokyo now stands at US $ 190 per sq ft per annum, a fall of 19% in 2008.
