Mumbai has slipped one position lower and is now ranked sixth in the pecking order for most expensive office locations in the world, according to Cushman & Wakefield.
The “Office Space Across the World 2011” report by the global property consultant said that the drop in Mumbai's ranking was a result of Rio de Janiero moving up to take the fourth position given a spike in rental values in Brazil's commercial capital. It is also because Mumbai, itself, has not seen any change in rental values over the previous year.
Rio gallops ahead
Meanwhile, in its dramatic rise from 13th position in 2010 to fourth in 2011, Rio de Janeiro took over many toppers including New York (now ranked 5th), Mumbai (6th), Moscow (7th) and Paris (8th). Hong Kong overtook London and Tokyo as the most expensive office location in the world, Cushman & Wakefield said.
“Key office markets around the world have seen sharp increases in rents… After recording the largest rental declines in 2009, Asia saw a sharp bounce-back in values in 2010 with rents in Hong Kong rising by 51 per cent. Bangalore CBD and Pune CBD ranked eighth and tenth respectively as the top ten locations in percentage increase in rental values in Asia,” it said.
Bangalore's CBD witnessed India's highest growth rate in rental values (at 13 per cent) on account of low vacancy and positive demand. Pune saw renewed interest from various sectors due to factors like proximity to Mumbai, favourable rental values and superior human resource catchments.
“Asian markets have been recovering and growing at a much faster rate than their European or North American counterparts, an aspect that is reflected in the Indian markets as well,” Mr Arvind Nandan, Executive Director, Cushman & Wakefield, India, said.