New Delhi – World’s fifth most expensive office market
Delhi-NCR: New Delhi stands in the second place among the most expensive office markets in Asia and fifth in the world, revealed a research report by real estate services firm Cushman & Wakefield.
According to the list, New Delhi is in the second position in Asia Pacific following Hong Kong, after beating Tokyo as the most expensive office location.
In the year 2012, office rentals in New Delhi and Chennai had witnessed tremendous growth. C&W hopes that the growth rate will be even higher in the current calendar year. A 25 percent hike was observed in the rental rates of Connaught Place in New Delhi in the previous year.
A moderate growth has been recorded in the office market of Asia Pacific this year. Progress has been observed in the market with leasing improvements and relatively modest increase in both rents and occupancies in most parts of New Delhi. The growth in rental office market is mainly due to the rising demand for proper workplace.
Last year, New Delhi stood in the 9th position in the world’s most expensive office markets. As per a survey made by CBRE Global Research and Consulting, the overall occupancy cost in the city is $183.30 per sq ft per year whereas Hong Kong’s overall occupancy cost is $246.30 per sq ft per year. Of the top 50 most expensive markets in the list, 19 are in EMEA, 18 are in Asia-Pacific and 13 in the Americas.
Limited supply of new office spaces, less number of new constructions and tight market conditions have driven the demand. The ongoing European debt crisis also curbed the recovery of the office market across the globe.
Connaught Place, strategically being located in the heart of Delhi, has excellent connectivity with all important places of the city. The Oct-Dec 2012 quarter observed a hike of 2 percent in the average per sq ft price of commercial office space compared to the July-Sept 2012 quarter.
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