JLL ranks Delhi's Connaught Place among most expensive office locations

Connaught Place has emerged as the sixth-most-expensive office location in the Asia Pacific region, slipping three positions since last year, according to property consultant JLL India.

The financial hub, Mumbai, is ranked 14th on JLL's list of 20 major markets in the Asia Pacific region.

In 2017, Delhi and Mumbai were ranked third and 11th, respectively, JLL India said in a statement.

"Connaught Place in New Delhi has the sixth-most-expensive rentals for premium offices among 20 major markets in Asia Pacific region," JLL said.

The average occupancy costs – including rent, taxes and service charges – in Connaught Place are at USD 142 per sq ft, which is higher than Pudong in Shanghai, Shinjuku in Tokyo and even Singapore.

Mumbai is ranked 14th with occupancy costs at USD 96 per sq ft.

The rankings are based on the fourth edition of JLL’s Premium Office Rent Tracker (PORT) for 2018, that calculates data on the achievable rent in the highest quality building in the premier office districts of 61 cities.

Ramesh Nair, CEO and Country Head, JLL India, said, “The commercial office segment is a strong growth driver for the real estate market in Delhi-NCR. Since the early 90s, and especially in the post-liberalisation era, Connaught Place has been one of the most preferred and sought-after office locations by leading Indian and global corporates."

It's a centralised location in the heart of Delhi, robust infrastructure and good connectivity makes Connaught Place the perfect destination for companies to have an office address there, he added.

“Driven by single-digit stable vacancies, steady lease rentals and high absorption, Connaught Place continues to be the premier and leading office market for corporates from across the broad spectrum of different businesses in Delhi NCR," said Samantak Das, Head of Research and Chief Economist, JLL India.

With an 18 per cent year-on-year increase in net absorption at 23.4 million sq ft during January – September 2018, the commercial office sector in India continues to witness strong growth momentum.

According to the list, Hong Kong (central) was most expensive with an occupancy cost of USD 338 per sq ft, followed by Beijing (finance st), Shenzhen and Beijing's central business district in China. Tokyo's Marunouchi in Japan was at the 5th position.

(With inputs from agencies.)