Mumbai Has Costlier Rent Than Dubai & Kuala Lumpur: Skyscraper Prime Office Rents Study
As per a recently released study into the global Skyscraper prime office rents, it has been found that Mumbai is expensive than Dubai, Kuala Lumpur and Seoul.
With rent of $51.50 (approx Rs. 3200) per square feet, Mumbai is ranked 15th.
Globally, Hong Kong offers the most expensive prime office rent at a skyscraper with $250.50 (Rs. 15,500) per square feet. New York is ranked 2nd with average rent of $150 (Rs. 9,300) per square feet while Tokyo with rents of $124 per square feet is at third.
In terms of increase in rent, New York was the fastest as the rents increased by 20%, compared to 11.3% in Hong Kong. With an improved US economy, the report predicts that New York and other American business hubs will soon overtake Asian business hubs.
Here are the ranking of world’s 18 most expensive locations:
The research was conducted by Knight Frank, an independent global property consultancy firm based in London. Globally they have 12,000 employees across 370 offices in 55 countries, and in India they are headquartered in Mumbai with 800 employees all over the country.
Some of the major factors which were considered while ranking these locations:
- Actual rents being charged, and investment returns on every dollar
- Spreads offered by real estate investments, compared with other forms of investment
- Total number of high rises or skyscrapers being built in that particular location
- Growth prospects of the location
This unique research into the rents of prime office space, only in skyscrapers all over the world was conducted to understand the economics of corporate growth and population expansion, in a world where real estate is becoming expensive and dearer.
Skyscrapers are today’s iconic construction projects, which can be compared with pyramids of the Ancient world. Embedding commercial, residential and office spaces into one structure, they are helping to solve the real estate problem with a new, unique proposition.
Taking care of the environment, and development at the same time requires detailed planning and execution, and skyscrapers are doing the exact thing in an efficient manner. Technically, a skyscraper is a habitable building with minimum 40 floors or a height of 350 feet.
Some interesting facts related with skyscrapers:
- In 2009, there were only 19 skyscrapers in the world, with a height of 1000 feet or more
- In 2015, there are 79 skyscrapers in the world with 1000 feet or more height, with 40% of them in China and 28% in UAE!
- If we talk about skyscrapers which are at a height of 350 feet or above, then Dubai has beaten them all. Since 2000, Dubai has added 190 skyscrapers and Shanghai has added 90
- Since last 15 years, London has added 23 skyscrapers, compared to 17 in the preceding 40 years
Last month we had reported a shocking news that India’s super rich are now investing more in global real estate, compared with Indian properties. With Mumbai turning out more expensive than Dubai in terms of skyscraper rentals, we can now witness more investments going out from India to UAE.
Full PDF report
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