Delhi’s Connaught Place – home to premium real estate, especially commercial property – is one of the most expensive office markets in the country.
According to international property advisory firm, JLL’s Premium Office Rent Tracker, the Connaught Place area has climbed up the rankings from 25 to 17 in one year – the average occupancy cost is around $109 sq ft per year (approximately ₹8,271), making it has gone. Expensive than San Francisco.
Rent Tracker compares occupancy costs for premium office buildings globally. The current version includes 127 office markets and sub-markets in 112 cities. Occupancy cost is calculated as the cost of net leasable area (actual area to be rented) and includes the cost of an occupier including rent, service charges and government taxes payable on rent.
occupancy cost
Mumbai’s BKC is the second most expensive Indian city office market, with an annual occupancy cost of $102 per square foot (approximately Rs 7,740). The city’s central business district is ranked 63rd globally with an annual occupancy cost of $58 per square foot (₹4,401).
Annual occupancy cost for Bengaluru remained constant at $51 per sq ft (₹3,870), while in Gurgaon, Delhi NCR, it declined from $48 per sq ft (₹3,642) to $44 per sq ft (₹3,339). If affordability is considered, Chennai is the fourth most affordable office market globally with an occupancy cost of $21 per sq ft per year (₹1,594).
Samantak Das, Chief, said, “Barring Connaught Place in Delhi and Bengaluru, all other major office markets have come down in rental values, mainly in view of the second wave and landlords being resilient to existing and new tenants. due to disruption.” Economist and Head of Research and REIS (India), JLL.
BFSI and Global Capacity Center are driving premium building rentals in India. The premium markets of Connaught Place and Mumbai BKC are largely driven by banking and financial services firms, in line with the global trend. In the case of Bengaluru, global capacity centers and technology companies are the major occupant segments in its premium markets.
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