London's West End, the City of London and Tokyo's Inner and Outer Central Five Wards are the top four most expensive office markets in the world, respectively, according to CB Richard Ellis Research's semi-annual Global Market Rents survey. The report tracks the world's most expensive markets as well as markets with the fastest growing rents over the past 12 months.
New Delhi's Connaught Place (CBD), India, was the only newcomer to the top ten most expensive markets, with an occupation cost of $116.19 (occupation cost in sq. ft./annum used throughout release), while Mumbai, at $138.41, rose two places to fifth. Midtown Manhattan is the priciest market in North America, at $69.44, and ranks #21 worldwide.
Abu Dhabi led the list of markets with the fastest growing office rents (in local currency and measure). The oil-rich city saw rents increase 103% over the past year. Ten Asian markets were among the top 50 markets with fastest growing rents, including three in the top 10: New Delhi ranked #2, with year-over-year rent growth of 79%; Singapore was #5 with a 54% increase; and Mumbai was #6, having experienced 45% rent growth over the last 12 months.
In North America, the fastest growing rents occurred in Edmonton, Canada, which ranked #4 overall, with 60% rent growth. Downtown New York ranked tenth, as rents increased 43%.
Of the 176 office markets monitored in Global Market Rents, 90% showed positive growth in the 12 months to the first quarter 2007.
Mumbai's Nariman Point rose two spots to fifth in the Top 10 most expensive markets, climbing to $138.41 over the last 12 months. Occupation costs in Tokyo's Inner Central Five Wards are $162.09, while Outer Central Five Wards costs are $143.52. Singapore rose from 43rd to 24th most expensive, increasing to $67.97. In the Pacific Region, Sydney was the only market to make it into the top 50 most expensive, coming in at 44th.
At $241.22, London's West End once again led the Top 50 most expensive office markets. Occupation costs in that submarket are 46% higher than the next most expensive submarket, the City of London (financial district), where occupation costs rose to $165.72. Also notable in the region was the Eastern European city of Sofia, where rents in local currency jumped 63% in the last year, making the Bulgarian capital the third fastest growing rental market in the overall global rankings. The only other European city among the top ten markets with fastest growing rents was Belfast, where rents grew 43%.
Three North American cities are represented in the Top 50 most expensive office markets: Midtown Manhattan (rising two places to 21st); Calgary (33rd); and Toronto (37th). Caracas rose to $50.17 and jumped up to 41st from 67th, while São Paulo (42nd) increased to $49.58.
Click here to read the survey.