Mumbai office space slips out of top five most expensive
Mumbai, which became the second-most expensive office property market globally one-and-a-half years ago at the peak of a real estate boom in the country, has now slipped out of the top-five list, as per a survey of 170 cities by real estate consultant CB Richard Ellis. The Indian city remained at the sixth position among the world’s costliest office rental markets. The cooling realty prices have also brought down New Delhi office rentals from the number eight position globally in November 2007 to the 12th slot in the latest ranking.
“The latest ranking highlights the decrease in office rentals due to a reduction in demand. However, Mumbai continuing in the top 10 list and Delhi being at 12th place globally reflects the shortage of prime office supply in India,” said CB Richard Ellis South Asia, CMD Anshuman Magazine. Office rentals in Mumbai fell 31% since November 2007 from $189 per sq ft a year to $131 per sq ft now. Similarly, office rentals in New Delhi also fell 31% from $126.7 to $86.9 per sq ft a year.
Mumbai ranked fifth in CBRE’s last survey released in November 2008, while Delhi was placed 13th. CBRE conducts the surveys every six month. Tokyo (Inner Central) tops the latest ranking with a rental of $183 per sq ft. It over took London’s West End that led the pack in November 2007 with $329 per sq ft rental, just ahead of Mumbai then. London’s West End is placed second with rentals almost half of what they were at their peak
Tags: CB Richard Ellis, Mumbai office rentals, Mumbai office space, New Delhi office rentals, Office rentals in India, office rentals in Mumbai
June 12th, 2009 at 3:11 am
The same trend is being observed in many other big cities also. Corporate houses and the investors both are turning their head towards neighboring cities which are considerably cheaper. Business operation cost and local disturbance is considerable low in smaller cities.
June 19th, 2009 at 2:24 pm
The situation with Mumbai is definitely something that has to do with the world economy slipping when it comes to real estate. People have investing billions in the hopes that more people would move up financially and purchase and/or rent these spaces to be lucrative. For years this has been the case. In recent times, however, more people are becoming mobile and thus, require office space more on an hourly/daily basis than permanently. Virtual offices may be something that decreases overhead, but does decrease purchasing. Thus, the reason for this majestic building slipping from the top 10 I\’m afraid.