26, December, 2017
Delhi rentals are higher than cities like Los Angeles, Singapore, Paris, Seoul, Sydney, Frankfurt, Chicago and Toronto. However, Mumbai figures among the world's most expensive locations for premium office rents, according to JLL's latest report released on Tuesday. While Delhi is ranked at number seven, Mumbai is ranked 16 on the list of the world's most expensive locations for premium office rents.
The findings reveal that the most expensive premium office rent in the world is in Hong Kong, followed by New York, London, Beijing, Silicon Valley, Beijing again (another financial district), Delhi, Shenzen and Tokyo.
"Regionally, cities across Asia-Pacific are home to the world's most expensive premium office spaces at an average of $111 per square ft per year, which is higher than America's ($85 psft per year) and EMEA (Europe, Middle East and Africa) at $78 psft per year," said the report by JLL, a leading professional services firm that specializes in real estate and investment management.
Hong Kong's Central continues to be the world's most expensive office sub-market. "Most striking is the differential that has emerged between Hong Kong and the next most expensive cities, with costs for premium office space now in excess of 50% than either London or New York," it said.
"At $300 psft per year, total rents here set corporate occupiers back by 70% more than for comparable buildings in New York's Midtown or London's West End. While six sub-markets from Asia figure in the top-10, economic diversity also means it offers some of the world's most competitively priced premium space, with Kuala Lumpur, Manila and Bangkok comprising the top three most affordable premium office locations."
Premium office rent refers to the 'top achievable' in units with area of over 10,000 sq ft in the premium building of the premier office district of each city. The third edition of JLL's Premium Office Rent Tracker (PORT) compares occupancy costs for premium office buildings across a broad range of major cities.
PORT includes the key elements of occupancy costs—net effective rent, service charges and government tax on rent. Occupancy costs for premium buildings have continued to rise in major office markets over a year, despite many being in a latecycle phase. Costs grew by an average of 4% during 2017.