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Bombay turns cheaper, is 9th most expensive city

The country's commercial hub Bombay, rated as the third-most expensive city globally in 1999, has slipped in its rankings to become the ninth most expensive city for prime office space in 2000.

According to the annual real estate report by Cushman and Wakefield, Bombay lost its global third position and second position as the most expensive city in the region to Hong Kong.

The report - business space across the world - attributed Bombay's southward move in the rankings to the fact that Bombay's rent became relatively inexpensive and it coincided with increasing occupancy costs in most other metro locations in the world.

"Rents in Bombay have remained relatively stable through most of the year 2000, after the initial increase in the first quarter of 2000," the real estate advisor said. The occupancy cost of Bombay was pegged at $708 per square metre per annum, way below the most expensive city of London at $1455, Tokyo at $1441 and Hong Kong at $1149, the report said.

The worldwide global ratings showed London leading the list of most expensive city for office space this year, followed by Tokyo, Hong Kong and San Francisco.

Despite a fall in the ranking behind London, Tokyo remained the most expensive location in Asia Pacific, the report noted.

Effective rates for prime office in Hong Kong surged by 94 per cent in 2000, with occupancy costs averaging 1,149 per square metre per year, it said.

While Paris ended fifth in the global ranks, Zurich was sixth, New York seventh and Stockholm eighth, leaving Bombay at the ninth rank.

"There is still a significant gap between the top three office markets (London, Tokyo and Hong Kong) and the remaining cities. In the fourth place is San Francisco, the most expensive office location in North America. The average occupancy cost there is 25 per cent and 41 per cent below Hong Kong and London," it said.

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