Mumbai sixth most expensive office market
24 February 2011
According to property services firm Cushman & Wakefield, Mumbai ranks as the sixth-most expensive office market in the world.
According to the company's report, Mumbai comes in at the sixth spot behind Hong Kong, London, Tokyo, Rio de Janiero and New York in terms of office rentals.
Class A office space rentals in Mumbai's Nariman Point area in south Mumbai range from Rs300 to 400 per square foot per month, adds the report. In a similar report last month Mumbai had been ranked at No 5.
The company adds that lack of new supply and limited demand for office space would likely keep office rentals stagnant in Mumbai.
Property prices in major Indian cities like Mumbai and Delhi have more than doubled over the past 18 months, on rising incomes and a firm stock market. However, sales volumes have come down by a third from a year ago with high prices and rising borrowing costs keeping away buyers.
The demand has also been hurt by India's apex bank raising interest rates seven times since March 2010 to curb persistent high inflation.
The top seven Indian cities have a total office space of 280 million square feet, which is expected to rise by another 50 million square feet in 2011.