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Mumbai among top 10 costliest office markets

Last updated on: May 7, 2010 20:22 IST

Image: The Taj Mahal Hotel in Mumbai.
Photographs: Reuters

Mumbai is the 4th most expensive office market in the world. London's West End remains the world's most expensive office market, according to CB Richard Ellis Group, which tracks occupancy costs for prime office space in 176 cities around the globe. 

"Mumbai CBD (central business district) regaining its 4th place in the most expensive office rents list from 7th place in December 2009 is a clear indication that the corporates have re-started to expand their operations and supply in this micro-market continues to remain limited, which has moved up the rentals," says Anshuman Magazine, chairman and managing director, CB Richard Ellis, South Asia.

Check out the top 10 expensive office markets...

Mumbai among top 10 costliest office markets

Image: London, most expensive office market.
London West End

With a whopping occupancy rate of $182.94 per sq.ft. per annum, London West End continues to be the world's most expensive office market. It has however fallen from $184.85 per sq. ft. per annum in December 2009.

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Mumbai among top 10 costliest office markets

Image: AIA Tower in Hong Kong.
Photographs: Bobby Yip/Reuters.
Hong Kong (Central CBD)

Hong Kong comes second with an occupancy rate of $153.20 per sq.ft per annum. The city was at the fourth place with an occupancy rate of 137.61 per sq. ft. per annum in December last year.

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Mumbai among top 10 costliest office markets

Image: Tokyo.
Tokyo, (Inner Central)

Tokyo (Inner Central) with a rate of $143.99 per sq. ft. per annum is at the third place. Asia Pacific had 13 markets among the top 50 most expensive, with three of the top five most expensive markets. Tokyo (Inner Central) was Asia's most expensive market with an occupancy cost of $172 per sq ft in December 2009.

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Mumbai among top 10 costliest office markets

Image: The Oberoi Hotel, Mumbai.
Mumbai

The rupee appreciating against the dollar has also played an important part in pushing Mumbai up the global ranks of the world's most expensive office markets with an occupancy rate of $125.76 per sq. ft. per annum.

However, the overall the supply of office space is significant and that will ensure rentals would continue to remain flat in the medium term. Mumbai had dropped to 7th position with an occupancy rate of $121.11 last year.

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Mumbai among top 10 costliest office markets

Image: MI-24 military helicopters fly over the Moscow city.
Photographs: Igor Rudenko/Reuters
Moscow

Moscow stands at the fifth position with a rate of $125.10 per sq. ft. per annum. The occupancy rate has fallen from $132 per sq. ft last year.

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Mumbai among top 10 costliest office markets

Image: Azalea are seen in full bloom in front of the Bank of Japan headquarters in Tokyo.
Photographs: Issei Kato/Reuters.
Tokyo (Outer Central)

Tokyo (Outer Central) is the second city from Japan which continues to be among the top ten with an occupancy rate of $118.41 per sq. ft. per annum. Tokyo (Outer) was the third most expensive place with an occupancy rate of $139.09 per sq. ft. per annum last year.

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Mumbai among top 10 costliest office markets

Image: The Eiffel Tower is pictured before Earth Hour in Paris.
Photographs: Benoit Tessier/Reuters
Paris Ile-de-France

Paris Ile-de-France, one of the twenty-six administrative regions of France, includes mostly the Paris metropolitan area with an occupancy rate of $113.23 per sq. ft. per annum. Paris was at the 6th position with an occupancy rate of $122.51 last year.

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Mumbai among top 10 costliest office markets

Image: London City.
London City

London City is at 8th position a notch above from last year's 9th rank, at a rate of $110.07 per sq. ft. per annum. London city had an occupancy rate of $108.83 last year.

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Mumbai among top 10 costliest office markets

Image: Fireworks at Burj Dubai.
Photographs: Mosab Omar/Reuters

Dubai

Dubai has been pushed to the 9th place from the 8th place last year, at a rate of $108.92 per sq. ft. per annum. Overall, the Europe Middle East & Africa region had an annual decline of -6.2 %, led by Moscow (-26.5%),
Dublin (-24.6%) and Abu Dhabi (-23.7%).  This region as a whole experienced 44 out of 57 markets with office occupancy costs falling.   

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Mumbai among top 10 costliest office markets

Image: Sao Paulo.
Sao Paulo

Sao Paulo, Brazil is ranked 10th with a rate of $100. The Latin American market led by Brazil was the only region to show an increase year over year in occupancy casts.

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