New Delhi’s landmark location Connaught Place has beaten Pudong in Shanghai, Shinjuku in Tokyo and even Singapore in terms of average occupancy costs. As per recently released JLL’s Global Premium Office Rent Tracker 2018, Connaught Place has emerged as the sixth costliest location out of 20 major markets in the Asia Pacific region.
The JLL report states that the average occupancy costs, which include rent, taxes and service charges, in Connaught Place are at $142, which is higher than Pudong in Shanghai, Shinjuku in Tokyo and even Singapore. The rankings are based on the fourth edition of JLL’s PORT 2018, under which 72 major office markets in 61 cities across the globe, including the key elements of occupancy costs – net effective rent, service charges and government tax on rent – all standardised to enable true international comparisons.
Among other Indian cities, the financial hub of Mumbai is ranked 14th with occupancy costs at $96. Gurgaon has also managed to rank in the list with $49 occupancy cost.
Hongkong is sitting on the top of the charts while New York-Midtown and London-West End are at second and third spots.
Other key highlights that emerged in Global Premium Office Rent Tracker 2018 are as follows:
- Occupancy costs continue to increase for premium offices by an average of around 4 percent in US dollar during 2018.
- Supply is on the rise and there are wider choice for occupier, but vacancy remains low
- Rental growth set to decelerate in 2019 as new supply comes through while rental growth is expected to decelerate as there are very few major markets where a downward correction is projected for 2019.
- Affordability continues to be a concern, particularly in the top tier of markets such as Hong Kong, New York and London
- The banking and financial services industry continues to be the main driving force of premium office rents, particularly in the ‘high-end’ and ‘mid-level’ markets.
Click here for the complete report.