Connaught Place eight costliest office place in world

Delhi's Connaught Place has slipped one notch to become the world's eighth costliest office destination. The commercial district was ranked seventh in the previous list released by property consultant CBRE in December 2013.

According to the semi-annual Global Prime Office Occupancy Costs survey, London West End's topped the list with overall occupancy costs of $277 per sq ft a year.

"London's West End remained the world's highest-priced office market followed by Hong Kong (Central) and Beijing (Finance Street)," CBRE said in a statement.

The property consultant has said Mumbai's Bandra-Kurla Complex (BKC) ranked sixteenth and Nariman Point thirty-second in the list of Top 50 Costliest Global Office Markets.

BKC was ranked 15th in the December list while Nariman Point held 32nd position.

Commenting on 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.

"At more than $150 per sq ft per annum, Delhi's traditional central business district (CBD) of Connaught Place was ranked as the eighth most expensive office market in the world," the report said.

Despite a drop in rankings by one spot over the previous survey, CBRE noted that 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 per cent year-on-year. Vacancy rates dropped marginally amid strong leasing activities.

"Global prime office occupancy costs rose 2.3 per cent year-over-year, led by the Americas (up 3.3 per cent) and Asia Pacific (up 2.9 per cent)," 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.