Mumbai enjoys the tag of financial capital of India and is home to thousands of businesses- both domestic and multinational. This has led to high demand for office space in Mumbai and resultant increase in its office rentals. A recent study by JLL Investment Management Company states that Mumbai is the 16th most expensive premium office locations in the world. Also, the rate at which rentals for office space in Mumbai have been increasing is more than that of Hong Kong, Tokyo, Los Angeles, Melbourne and London.The premium office rent in this study refers to ‘top achievable’ in units over 10000 square feet in a premium building in a premier business district. In fact, according to another study, the office space for rent in Mumbai is among the top six globally!
What makes Mumbai office properties so expensive?
Costly Office Districts
The most expensive office space for rent in Mumbai is Bandra Kurla Complex, an office district which houses offices of many multinationals and groups of companies. The second most costly area for office is Nariman Point Central Business District which is ranked 30th on the global scale. The global recession and slow down in Real Estate sector does not seem to have had any significant effect on Mumbai’s office space rentals. The rentals in Mumbai have surpassed Singapore, Seoul, Sydney, and Chicago. The average rent recorded for office space in Mumbai in a commercial high rise was USD 56 per sq feet.
On the national tally, Delhi took the crown of being the most expensive premium office location in India. Delhi is ranked at 6th on global list of premium office spaces, much ahead of Mumbai. The Connaught place in Delhi is the business district which claimed this distinction.
The Most Expensive Office Addresses
In fact, the report by JLL found that the cities in Asia on an average command much higher rentals at USD 111 per Square feet as compared to the US (USD 85/ sq feet) and Europe & Middle East (USD 78/ Sq feet). The major reason for this is the high growth rate of South East Asian economies particularly India and China. Hong Kong’s Central is the most expensive office address in the world with USD 300 per Sq feet! On the other hand Manila (Philippines), Bangkok (Thailand) and Kuala Lumpur (Malaysia) offer the most affordable office spaces in the world.
Mumbai is a global hub for India and it is where all the action lies. It is not surprising that renting office spaces in Mumbai requires coughing up a good amount of money!