CP eighth most-expensive office location globally: CBRE

Connaught Place in Delhi has slipped one position to become the world's eighth costliest office destination, according to a report.

London’s West End remained the world’s highest-priced office market followed by Hong Kong (Central) and Beijing (Finance Street), according to CBRE Global Research and Consulting’s semi-annual Global Prime Office Occupancy Costs survey.

Mumbai's Bandra–Kurla Complex (BKC) was ranked sixteenth and Nariman Point at thirty-second in the list of Top 50 Costliest Global Office Markets.

In the previous survey in December 2013, Connaught Place was ranked seventh, while Mumbai's BKC and Nariman Point were at 15th and 32nd positions, respectively. London West End's had an overall occupancy cost of $277 per sq ft a year, while Connaught Place has $150 per sqft/annum, according to the report.

CBRE South Asia Chairman & MD Anshuman Magazine said: "This downward change in rankings in the CBD is due to a recovering global market. However locally the demand levels remain stable and due to lack of new supply values remain high".

CBRE tracks occupancy costs for prime office space in 126 markets around the globe. The survey provided data on office rents and occupancy costs as of March 31, 2014.

Connaught Place remains highly sought after by corporate office occupiers, because of its central location and connectivity to the rest of the city. During January-March quarter, rental remained high due to limited supply of prime space. The occupancy cost of CP rose by 1.2% year-on-year. Vacancy rates dropped marginally amid strong leasing activities.

"Global prime office occupancy costs rose 2.3% year-over-year, led by the Americas (up 3.3%) and Asia Pacific (up 2.9%)," CBRE said. Of the top 50 'most expensive' markets, 21 were in EMEA, 20 were in Asia Pacific and 9 were in the Americas.

The total occupancy cost of Hong Kong (Central), ranked second in the list, stood at $242 per sq ft followed by Beijing's Finance Street at $194 per sq ft, Beijing's CBD at $187 per sq ft and Moscow at $165 per sq ft.