India fifth in world's top shopping streets
India captures the 5th position (from last years 11th position) in world's top shopping streets according to this year's edition of Office Space Across the World, a global report on office occupancy costs, produced by real estate services firm Cushman & Wakefield, using data collected by the firm's offices around the world at the end of December 2006.
Worli in Mumbai, is the most expensive office location within India, having witnessed a 107 per cent annual rental growth, making it one of the biggest risers in the ranking. Sanjay Verma, Executive Managing Director, South Asia, Cushman & Wakefield, comments about the rise of Mumbai: "The financial services sector continues to be very active in Mumbai. Last year saw the entry and expansion of several major investment banks, including Goldman Sachs, UBS and Credit Suisse First Boston, as well as a host of private equity funds, leading to the rapid take-up of prime office space in south and central Mumbai.
This strong demand, along with the lack of new development and the low vacancy rates, has resulted in the significant escalation of rents."
India accounts for eight of the top ten locations in terms of rental growth. Fastest growth is seen in Mumbai's central district of Worli (which also has the highest occupancy costs in Mumbai) and the Bandra Kurla Complex, in Mumbai's suburbs. These two locations have seen rents increase 107 per cent and 93 per cent respectively.
London's West End district retains its title as the world's most expensive office location. One square metre of prime office space in London's West End costs £2,009 a year for companies to occupy.
This is 35 per cent higher than the occupancy costs in Tokyo, at £1,493, which this year has overtaken Hong Kong (£1,448) to take second place.
The strong growth by Dublin and Mumbai pushes down Midtown New York two places to 9th position.
In terms of rental increases last year, the biggest rise in local currency terms was in Abu Dhabi in the United Arab Emirates, with rents going up 200 per cent.
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