Mumbai, which became the second-most expensive office property market globally one-and-a-half years ago at the peak of a real estate boom in the country, has now slipped out of the top-five list, as per a survey of 170 cities by real estate consultant CB Richard Ellis. The city remained at the sixth position among the worlds costliest office markets.
The cooling realty prices have also brought down New Delhi from the number eight position globally in November 2007 to the 12th slot in the latest ranking released on Thursday.
The latest ranking highlights the decrease in rentals due to a reduction in demand. However, Mumbai continuing in the top 10 list and Delhi being at 12th place globally reflects the shortage of prime office supply in India, said CB Richard Ellis South Asia, CMD Anshuman Magazine.
More : economictimes.indiatimes.com
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Mumbai and Delhi are the second and eighth most expensive places respectively in the world for renting office spaces. In terns of cost, these places are ahead of New York, Los Angeles, Geneva, Rome and Shanghai.
London West End continues to be costliest place in the world with a rental of Rs 1,080 per sq ft per month. As against this, the occupation cost in Mumbais Nariman Point in November 2007 hovered at Rs 625 per sq ft per month and in Connaught Place in Delhi at Rs 415 per sq ft per month.
In the last one year, rentals
Slowdown may be gripping residential property sales but commercial property rentals are headed in the opposite direction. In fact, big ticket rental transactions are in vogue. Over the last one year, high rental deals have been witnessed in prime property markets of Mumbai and Delhi. In fact, global real estate consultancy CB Richard Ellis latest report, which looks at office rents and occupancy costs worldwide, has Mumbai at No 4 and New Delhi at No 7 in the most expensive office markets.
The most striking example that hogged the limelight in May 08 was when London-headquartered Barclays bank took up
Slowdown in housing has now spread to office rentals. Gurgaon and some business districts in Delhi have seen a decline of up to 25% in office rentals in the June quarter. Meanwhile, office space demand saw marked moderation in Mumbai and Bangalore as office occupiers deferred their expansion and downsized their commitment.
According to the international property consultancy firm CB Richard Ellis latest report, the average rental in Gurgaons grade A office properties has declined from Rs 105 per sq ft to Rs 95 per sqft in June quarter, compared to the March quarter on the back of increased supply
The Delhi University late on Thursday night released the second cut-off list for the admission for the new academic year even as nearly 80 per cent of its 43,000 seats were filled up in last three days.
The first phase of the admission process ended on Thursday evening, said SK Verma, deputy dean of students welfare at the university.
We are releasing the second cut-off late on Thursday so that students can get the list by Friday morning, said an official of the university registrars office.
In the second cut off list, the Kirori Mal College showed a decrease of one per cent
For the first time in the past five years, Mumbais commercial real estate market is headed for an oversupply with a total of 16.02 million sq ft of new commercial office space expected to enter the market in 2009. However, demand has been dipping steadily.
According to property consultancy Jones Lang LaSalle Meghraj (JLL-M), the demand for office space has dropped 60-80% compared to the peak period from late 2005 to early 2008.
Some parts of the city had seen rental appreciation of over 100% during the period on the back of demand from the banking, financial services and insurance
