India’s commercial capital – Mumbai is one of the five most expensive office markets whereas the capital of India – Delhi occupies the 13th position according to the Global Market / Office Occupancy Costs Survey market report released by CB Richard Ellis Group, Inc.
The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended September 30, 2008. London’s West End and Moscow remain the world’s two most expensive office markets respectively followed by Hong Kong and Tokyo. The average rate of growth for office occupancy costs among the 172 markets monitored in the survey was 8 per cent, almost double that of last year’s world inflation rate.
Asia Pacific was the fastest growing region among markets in the top 50, at an average rate of 26.2 per cent. Among the region’s ten entries in to the top 50 fastest growing and second overall, Ho Chi Minh City, Vietnam, was up 51 per cent. Australia was second in the region and fourth overall. Up 94 per cent, Abu Dhabi had by far the fastest growing occupancy costs, with three of the top five fastest growing countries situated in the Middle East.
“Our current perceptions are greatly effected by the current economic malaise and we tend to forget how fast rents and occupancy costs were rising over the last 12 months,” said Dr. Raymond Torto, CBRE’s global chief economist. Adding further, he said, “Clearly the rate of change is generally slowing, and in some markets the pricing direction is down. The turn in rent trajectory will provide some relief to occupiers and angst to owners. However, unlike previous downturns, which have occurred simultaneously with extensive overbuilding, the real estate market globally today is in a stronger position to weather the difficulties than in the past.”
—IndiaRetailing Bureau, Mumbai
