Connaught Place or popularly known as CP, has emerged as the third most expensive office market in the Asia Pacific region. In a recent report titled ‘Asia-Pacific Prime Office Rental Index Q4 2017’ by property consultant Knight Frank, this data was revealed. According to the report, the rental price of commercial space in CP is $ 88.8 per square metre (sqm) per month.
The report was made after a brief compilation of most expensive office spaces across 20 international cities. While Central in Hong Kong topped the list with rentals of $ 212 per sq. m per month, Mumbai’s premium office space Bandra-Kurla complex emerged as fifth most expensive commercial space with rentals of $80.1 sq. meter per month.
In terms of rental appreciation, Bangalore’s Central Business District (CBD) recorded the 3rd highest growth with annual increase of 5.4% in the 12 months to Q4 2017. While Connaught Place with 5% growth ranked 5th by this measure, BKC with 4% appreciation stood at the 10th position.
After the release of report, Samantak Das, chief economist and national director – research, Knight Frank India, said, “The 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 CP.”
Further rentals across at least 16 out of the 20 markets tracked are either set to appreciate or stay stable, the report added. Demand for co-working and technology-related spaces are expected a play a major part in pushing rents up.