Delhi’s Connaught Place has emerged as the sixth most expensive office location among 20 major markets in the Asia Pacific region in 2018, according to data compiled by global real estate consultant JLL. The area, however, slipped three positions since last year. In Connaught Place (CP), the average occupancy cost including rent, taxes and services changes is at $142 per square feet, which is quite higher than Shinjuku in Tokyo, Pudong in Shanghai and even Singapore, the report said.
This year, Mumbai- the financial capital of India – is ranked 14th on the list of 20 major markets in APAC. Last year, while Delhi was ranked at 3rd position, Mumbai grabbed the 11th position in the list of premium office locations in the region. The average occupancy cost in Mumbai is at $96 per square feet.
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“The commercial office segment is a strong growth driver for the real estate market in Delhi-NCR. Since the early 90s, and especially in the post-liberalisation era, Connaught Place has been one of the most preferred and sought-after office locations by leading Indian and global corporates,” JLL India’s country head and CEO Ramesh Nair said in the statement.
A limited supply of office space, good connectivity, centralised location in Delhi and robust infrastructure makes Connaught Place the ideal destination for companies to have offices there, Nair added.
“High-value, high-margin businesses in financial services such as private, corporate and investment banking firms, rent premium office space in Beijing, Shanghai, Tokyo and Singapore. While cost remains a key factor, these companies prioritize access to talent and the need for amenities when selecting their next office location. They target premium quality buildings to attract and retain top talent, which also helps to enhance their brand image,” said Jeremy Sheldon, Managing Director, Markets and Integrated Portfolio Services, JLL Asia Pacific.
For the fourth successive year, Hong Kong (central) emerged as the most expensive with an occupancy cost of $338 per square feet, followed by Beijing financial street, Shenzhen and Beijing’s central business district in China. Tokyo’s Marunouchi stood at 5th position.
The occupancy costs in Hong Kong are 60% higher than Midtown in New York and about 75% more expensive than West End in London. The rankings are based on the fourth edition of JLL’s Premium Office Rent Tracker (PORT) for 2018.
