Mumbai, New Delhi rank among ten most expensive office markets in the world: Report

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While, at $299.54 per square feet (sq. ft.) per annum, London's West End easily retained the top spot, other central business districts (CBDs) have been gaining ground, the report has revealed.

The occupancy cost or rent in Mumbai's CBD (rank 4) was $210.97 per sq. ft per annum while that in New Delhi was $145.16 per sq ft per annum (rank 7). The two cities witnessed a jump of 40.7 percent and 15.3 percent respectively in occupancy cost over the year.

Securing the second and the third spots were Moscow ($232.37 per sq. ft. per annum) and Tokyo where high demand and supply shortage have seen occupancy costs skyrocket over the year.

According to Anshuman Magazine, managing director, CB Richard Ellis, South Asia, while New Delhi climbed one rank over the year, Mumbai dropped from No.3 to No.4. "This drop is not due to a reduction in the rentals but because of significant rise in the rentals in Moscow and Tokyo," Magazine said.

The presence of Mumbai and New Delhi in the top 10 list indicates the tight supply of prime office space and increasing demands in these two cities, he added.

Interestingly, annual rent per sq. ft. in New York's Midtown Manhattan (rank 13) - $103.43 - was significantly lower than those in Singapore (rank 9) and Dubai (rank 10) - $139.31 and $128.49 respectively.

Even Hong Kong ($126.79) and Dublin ($126.60) were ranked above Midtown Manhattan at No.11 and 12 respectively.

However, Manhattan turned out to be more expensive than Madrid (rank 17; $96.64), Zurich (rank 18; $92.99) or Milan (rank 24; $85.41).

Also in the top 50 list were Geneva (rank 29; $78.43), Seoul (rank 36; $71.40), Rome (rank 37; $71.18), Munich (rank 40; $67.55), Barcelona (rank 45; $64.43) and Toronto-CBD (rank 47; $62.44).

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