Connaught Place world's 5th Most Expensive Office Market: CBRE

“This is primarily due to low supply of space with very limited new supply expected in the near future. This is especially true for quality office space which has led to occupancy cost remaining high,” he added.
Strong demand coupled with Connaught Place’s central location, excellent access to key regional markets and limited availability of prime office space, has fuelled the area’s rising occupancy costs, the report said.
CBRE also noted that the gap in office occupancy cost between the CBDs such as Connaught Place and suburbs such as Gurgaon is enormous.
“Connaught Place finds mention in the top 5 list, while Gurgaon is at the 72nd spot in the same list. This is one of the foremost reasons why most corporate occupiers (particularly in the IT and allied services) continue to opt for cost effective office spaces in suburbs,” CBRE said.
Other Asia-Pacific markets in the top 10 include Hong Kong-West Kowloon (6th) and Tokyo (Marunouchi/Otemachi) (8th).
New York’s Midtown Manhattan (10th) returned to the top ten markets for the first time since early 2012, joined by Moscow (7th) and London’s City (9th).
“Globally, occupancy costs rose by a scant 1.4 per cent on a year-over-year basis as modest growth in the Americas and Asia Pacific was partly offset by a slight decrease in recessionary Europe,” the statement said.

Read More: Middle Class Chasing Elusive Dream of Buying Affordable Homes