Nariman Point gets a high

Nariman Point has leapt from No.23 to No.7 on the ratings of most expensive places in the world for office space, according to a recent survey by property consultants CB Richard Ellis (CBRE).

“With occupancy costs increasing by 69 per cent in the last one year, Nariman Point has seen the highest rent appreciation,” said the report. Costs of prime office space has climbed phenomenally in India and China—the two nations where economic growth has been the fastest, it added.

The report further said that European cities continued to dominate the top-50 list of most expensive office markets. In contrast, only four North American cities have made the list—New York’s Midtown Manhattan (No.23), Toronto (No.32), Calgary (No.35) and Washington DC (No.40). Overall, CBRE said that occupancy costs had gone up in 119 markets of the 173 surveyed, while 24 witnessed a fall during the past year.

CBRE’s findings were echoed by another global property consultant, Cushman and Wakefield. They said that vacancy levels for all prime buildings across Mumbai had declined in the past few quarters.

Financial firms have emerged as the primary demand drivers, absorbing 64 per cent of the total space over the first three months this year.

“Monthly base rents for all prime properties are estimated to be in the range of Rs 190-225 per sq.ft (psf) as against the Rs180-190 psf for grade A buildings in Worli and Bandra Kurla complex,” the report said.

Consultants believe that IT and financial services firms might root for commercial precincts.