Office rents in Mumbai, Delhi still among highest in the world

New Delhi, May 30:

Despite slow growth in rentals, Mumbai and Delhi remain among the world’s 10 most expensive cities to rent office space in, according to CB Richard Ellis Group’s semi-annual global market rents survey, results of which were announced here today.

However, Mumbai, which was the world’s second most expensive office market during the last survey in November 2007, is now in fourth place, though its rental of $210.97/sq ft is still 41 per cent higher than it was last November.

Moscow, where office rentals have risen by 93 per cent since last November to $232.37/sq ft, is now at second place instead. Delhi is now in seventh place, from eighth last November. Office rentals in Delhi have risen by 15.3 per cent during this period to $145.16 per sq ft, the survey stated.

The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended on March 31. London’s West End has retained its position as the world’s most expensive office market at $299.54/sq ft.

Two areas in Tokyo occupied two of the other top-five spots — Inner Central Five Wards and Outer Central Five Wards — both at $220.25/sq ft.

The drop in Mumbai’s ranking is not due to rentals in Mumbai falling, but because of a significant increase in rentals in London and Moscow.