Mumbai ranked 15th on global skyscraper rents, says Knight Frank report

Mumbai with office rents at $51.50 per sq. ft. ranks 15th globally, according to the Skyscraper 2015 Report released by property consultancy firm Knight Frank today. The study looks at the prime office rents of 18 markets across the globe.

Hong Kong continues to boast of the world’s highest skyscraper office rents at $250.50 per sq. ft. However,New York is closing in fast with skyscraper prime office rents dramatically increasing by 20 per cent to hit $150.00 per sq. ft since July 2014, outperforming Hong Kong, which increased by only 11.3 per cent. Seoul ranked 18{+t}{+h} with rents at $33.25 per sq ft.

The Skyscraper Index ranks cities according to a score system based on a range of criteria, including skyscraper office rents and yields, the spread offered by investment yields compared to national bonds, the number of high rises built, and growth prospects for the city.

According to the report, New York rental values have boomed as skyscraper development has increased, with towers proving popular workplaces for the expanding digital and creative firms in the city, as well as financial and professional firms. The city’s population has also increased by 19 per cent since 1980. IT’S ALL ABOUT PEOPLE

“We are now seeing the western cities erode the lead of big Asian centres in tower office rents. For premium floors with views, rents are rising in Hong Kong, but they are increasing much faster in New York. Similarly, London is closing the gap on Tokyo,” James Roberts, Chief Economist at Knight Frank said.

“Economic growth prospects for this year favour locations such as New York and London, so I see these cities stepping up competition on the Asian centres. Many people like to say that the balance in the global economy is shifting from west to east, but certainly skyscraper rents provide another indicator that shows this is not entirely the case,” he added.

In 2009, there were 19 skyscrapers in the world with heights of over 1000 feet. Today there are 79 of them, 40 per cent of which are in China and 28 per cent in the UAE. London has added 23 new skyscrapers (a building over 350 feet high) since the turn of the millennium, compared to 17 in the preceding 40 years, and New York added four new towers in 2014 alone, including the iconic One World Trade Center. Interestingly, Dubai has built nearly 190 skyscrapers since 2000, and Shanghai over 90.

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