MUMBAI: The commercial business district of the Bandra-Kurla Complex (BKC) has emerged as the second most expensive office location in India and eighth in the Asia Pacific region.
Delhi’s Connaught Place, which tops the national list, however, dropped four notches to number eight on the global charts from last year.
The annual survey of the most expensive office locations released by global property consultant Cushman & Wakefield on Tuesday has London’s West End reclaiming its numero uno position. The report ranks locations across Americas, Europe, Asia Pacific, and Middle East & Africa to compare the most expensive office destinations across the world.
BKC with rentals of Rs 285 a sqft a month has remained stable in terms of rental values over the last year due to a large upcoming supply. It is estimated to add approximately 33 lakhsqft in the next two years. “This is also expected to ensure that values remain at their current levels for a few more quarters,” said the report. “Demand for office space in BKC has been driven by front office operations of banks and financial services institutions, consulting, government and semi-government organizations. With an increased trend of consolidation, relocation and collocation being observed in the office sector, demand is expect to remain positive albeit at similar rental values.”
Connaught Place fell from the fourth to the eighth rank on the global list due to an appreciation in US dollar and euro against the Indian rupee last year. “This caused a shift in New Delhi’s position in terms of global occupancy costs when measured on a dollar or euro basis,” said the report. Connaught Place commands stable rentals of Rs 403 a sq ft a month.
“Limited activities in the location has led to the rentals remain stable and may continue at similar levels as the market may have reached its peaks rental, backed by the still prevalent and positive demand for office space in the area,” it said.
The location continues to remain high on priority for sectors such as BFSI, consulting, trade and media. The survey said that demand for quality space in Connaught Place continues since it is the oldest established office centre in India. It is also in proximity to other establishments like government organizations, trading centers and retail location.
London’s West End emerged as the world’s most expensive office market retaining its position ahead of Hong Kong in second place. Of the top 10 markets, only London (+5%) and New York (+17%) registered a rise in rental values, while most other top 10 markets recorded a slowdown in rental values. Moscow and New Delhi recorded no changes in rental values.