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Mumbai office mkt 5th most expensive in the world. Pic for representation only

Mumbai emerged as the fifth most expensive office location in the world, ahead of major cities like New York, Moscow, Paris and Milan. It was also the third most expensive office space location in Asia Pacific region after Tokyo and Hong Kong. Tokyo also remained the most expensive office location in the world, followed by London, Hong Kong and Dubai. However, the global economic slowdown impacted on the occupational market in every corner of the world in 2009 which was supplemented by the increase in supply and fall in demand for office space. According to latest report issued by global property consultants Cushman & Wakefield, the office market rents decreased by 10% globally; and 16% in Asia Pacific region.
The Indian office market rent witnessed a fall of 20%, with Chennai and Mumbai (Worli) were the worst affected cities as they both registered fall in rental values by almost 30% over the year. Most Indian and multinational companies either postponed or cancelled expansion plans, therefore causing a decline in occupier demand.
Sumit Rakshit, executive director, Occupier Services, Cushman & Wakefield India, said: “Rental corrections experienced across India in 2009 have made the office market more attractive for end users. With corporates reconsidering their expansion plans and anticipating rationalization of rental values, we expect the demand in 2010 to be buoyant. However, the focus is likely to be the key markets of NCR, Mumbai and Bangalore in the early part of the year. The IT/ITeS sector, which is a key demand driver in India, is expected to gather momentum mostly by the latter part of 2010.”

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