Mumbai slips on most expensive office space list

In spite of slipping two positions since last year owing to economic downturn, Mumbai is still in the race, at sixth position, as one of the most expensive office locations in the world, according to Office Space Across the World 2009, a report published by global property consultants Cushman & Wakefield.

The list is topped by Hong Kong, followed by Tokyo, London, Moscow and Dubai.

According to the report, Nariman Point, the central business district (CBD) of India’s financial capital slipped two positions from last year’s fourth rank moving towards more cost effective rentals, giving way to Moscow at fourth position and Dubai at fifth.

The study compares office occupancy costs in 202 key locations in 57 countries around the world. London lost its status as the world’s most expensive office location for the first time in nine years.

Honk Kong emerged as the most expensive office location in the world while Worli in Mumbai and CBD in New Delhi took the 10th and 12th position as the most expensive office location in the world respectively.

With the slowdown in the global economy, many corporates eased or postponed their expansion plans in Mumbai resulting in subdued demand for office space.