The central business district in the national capital region of Delhi is the fifth most expensive CBD location in the Asia pacific while the Mumbai's CBD is at the tenth position, according to the latest Asia Pacific Office market report from Cushman & Wakefield.
Traditionally expensive office destinations of Hong Kong, Singapore and Tokyo continued to hold the top three positions respectively.
Among 25 cities of Asia, NCR and Bangalore saw the highest increase in office rental value in the January-March 2012 quarter. Rents in Bangalore CBD increased 18% while NCR-CBD recorded an increase of around 14% over the previous quarter.
"CBD locations across most cities of Asia particularly Hong Kong had witnessed a significant run up in rental and capital values over the last year however most Asian markets are currently depicting signs of stability, with some key emerging markets of India still showing growth owing to the sustained demand generated specially from banking & consultancy, automobile, engineering and pharmaceutical sectors," says Ravi Ahuja, executive director, office transactions at Cushman & Wakefield India.
"There has been a clear preference for cost efficient locations which is the reason why traditional high cost locations have seen a slight correction, while cities such as Bangalore, New Delhi-NCR and Bangalore have seen a stable rise. These markets are high on the value proposition with inherent demand for services / products as well as provide quality work force," he adds.
The CBD in New Delhi, which continues to get limited new supply, emerged as the most expensive office market destination in India at the end of Q1 2012. With a rental value of INR 366 per sq ft per month, rising 14% over the previous quarter, rentals here have surpassed those in Mumbai CBD and Bandra Kurla Complex.
Bangalore, which has always been a high absorption market-11 million YoY-witnessed the highest percentage rise in rents in the CBD location at 18%, making it the fastest growing office market across Asia in Q1 2012
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