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Connaught Place third-most expensive office district in Asia-Pacific: Report

[ecis2016.org] Established business districts across key Indian metros dwarfed many mature international markets, in terms of rental growth and overall gross effective rents, says a report by Knight Frank

Commanding gross effective rentals of USD 88.8 per sq metre per month, Connaught Place in Delhi, emerged as the third-most expensive office district among global peers across 20 international cities, on the index topped by Central, the prime office pocket in Hong Kong (USD 212 per sq metre per month), according to the Knight Frank Asia-Pacific Prime Office Rental Index Q4 2017. Mumbai’s Bandra Kurla Complex (BKC) was the fifth-most costly office conclave on the list, with gross effective rentals of USD 80.1 per sq metre per month. BKC improved its position by two placed, over Q4 2016.

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In terms of rental appreciation, Bengaluru’s Central Business District (CBD) recorded the third-highest growth with YoY increase of 5.40 per cent in the 12 months to Q4 2017. While Connaught Place (five per cent) ranked fifth by this measure, BKC (four per cent) stood at the 10th position. Projections for the subsequent 12-month period, indicate rental growth in BKC and Bengaluru but it is expected to plateau at Connaught Place.

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Overall, the index recorded 1.1 per cent YoY growth in the last quarter of 2017, propelled by solid economic performances across the Asia-Pacific region. This was primarily driven by rising rents in 12 of the markets over the quarter. Further, rentals across at least 16 out of the 20 markets tracked, are either set to appreciate or stay stable, the report added. Demand in co-working and technology-related spaces is expected a play a major part, in pushing rents up.

Speaking on the report findings, Samantak Das, chief economist and national director-research, Knight Frank India, said, “Rental growth continues to be strong across prime office markets in India, on account of an ongoing supply crunch in the country. This, coupled with strong occupier demand, is expected to drive the rentals up in the next 12 months in the prime office markets of Mumbai and Bengaluru. However, we expect rental growth to remain stable in Connaught Place.”

Asia-Pacific prime rental index – Q4 2017

City Sub market 12-month percentage change (Q4 2017) Ranking – 12 months Gross effective rent (in USD/sq m/month)** Ranking – Gross effective rentals
Bengaluru CBD 5.40 3 29.8 18
Mumbai BKC 4.00 10 80.1 5
New Delhi Connaught Place 5.00 5 88.8 3
Kuala Lumpur City Centre -1.50 20 16.7 20
Manila Various 6.30 2 21.9 19
Brisbane CBD 2.80 13 30.4 17
Perth CBD 2.00 15 30.6 16
Phnom Penh 2.80 12 30.7 15
Melbourne CBD 4.30 9 36.1 14
Bangkok CBD 4.40 7 36.8 13
Jakarta CBD 0.40 17 38.5 12
Taipei Downtown 3.10 11 40.8 11
Guangzhou CBD 4.60 6 47.5 10
Sydney CBD 6.90 1 57.9 9
Shanghai Puxi, Pudong -1.00 19 67.8 8
Seoul CBD, GBD, YBD 4.30 8 73.4 7
Singapore Raffles 1.00 16 76.1 6
Beijing Various -0.60 18 82.6 4
Tokyo* Central 2.40 14 91 2
Hong Kong Central 5.20 4 212 1

Read also : Badlapur west property market: An overview

Note: Gross effective rentals – Inclusive of incentive, service charges and taxes. Based on net floor areas** / *Sanko Estate

Asia-Pacific prime rental index – Q4 2016

City Sub market 12-month percentage change (Q4 2016) Ranking – 12 months Gross effective rent (in USD/sq m/month)** Ranking – Gross effective rentals
New Delhi Connaught

Place

4.30 8 81.3 3
Mumbai BKC 4.80 6 72.1 7
Bengaluru CBD 5.20 5 26.5 18
Hong Kong Central 6.10 4 199.4 1
Tokyo* Central 2.80 10 92.2 2
Beijing Various 1.90 11 80.2 4
Seoul CBD, -0.20 14 73.1 5
Singapore Raffles -11.90 18 72.5 6
Shanghai Puxi 4.50 7 66.2 8
Sydney CBD 10.10 1 52 9
Guangzhou CBD 1.10 12 44.2 10
Jakarta CBD -18.20 19 39.7 11
Taipei Downtown -0.70 15 38.3 12
Melbourne CBD 7.00 3 32.7 13
Bangkok CBD 8.70 2 31.3 14
Phnom Penh 2.90 9 30 15
Perth CBD -1.60 17 28.7 16
Brisbane CBD 1.00 13 28.1 17
Kuala Lumpur City Centre -0.90 16 16.2 19

Read also : Badlapur west property market: An overview

Note: Gross effective rentals – Inclusive of incentive, service charges and taxes. Based on net floor areas** / *Sanko Estate

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Source: https://ecis2016.org
Category: Lifestyle

Debora Berti

Università degli Studi di Firenze, IT

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