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CP rents are 11th highest in the world

delhi Updated: Nov 12, 2010 03:37 IST
HT Correspondent
HT Correspondent
Hindustan Times
Connaught Place

The national capital is the 11th most expensive city in the world in terms of renting office space in central business district of the city.

According to a recent study, rentals in Connaught Place area have seen an increase of 8% in the past one year. But Delhi still does not have the tag of the most expensive city in India.

Mumbai — the country's financial capital — enjoys this distinction, placing it fourth in the global list of most expensive cities in the world.

The facts have come out in a semi-annual 'global office rents survey' conducted by CB Richard Ellis Group, a global research and consulting group.

According to the survey, London (West End) continues to remain the world's most expensive office market followed by Hong Kong Central Business District, which has also witnessed a tremendous 34.2% occupancy cost rise.

Tokyo's Inner Central is the third most expensive market for office space followed by Mumbai and Moscow at 4th and 5th places, respectively. The survey has tracked occupancy costs for prime office space in 175 cities around the globe.

Renting a commercial space in Connaught Place costs about R 4,500 per square foot per annum (US Dollars 101.21). Simply put, rent for a modest 1,000 square foot office in the capital’s business district is estimated at R 45 lakh per year (R 3.75 lakh per month).

"Though Delhi's ranking has not changed globally since May this year, the 8% increase in rentals is an indicative of an increase in demand for office space in the city," said Anshuman Magazine, chairman & managing director, CB Richard Ellis South Asia.

Apart from Hong Kong (Central CBD), London City and São Paulo (Brazil), Paris, Shanghai and Washington DC are among the markets that have seen significant increase in their rents.

"Major markets in emerging economies feature prominently at the top of the list of most expensive office costs as measured in dollars per square foot," said Nick Axford, executive director, head of research, Asia at CBRE.