Flying Car -- Becomes Reality

Mumbai office mkt sixth most expensive globally

Mumbai has been ranked as the sixth-most expensive office market in the world, according to a global survey by property services firm Cushman & Wakefield.

With office rentals in its main business district averaging $114 a square foot per year, Mumbai ranks behind Hong Kong , London, Tokyo, Rio de Janiero and New York, the report said.

Rentals for Class A space at the Nariman Point area in south Mumbai typically range between 300 to 400 rupees per square foot per month. Mumbai had been ranked No. 5 last year in a similar survey.

Cushman & Wakefield said lack of new supply and limited demand for office space is likely to keep office rentals stagnant in Mumbai.

Property prices in Mumbai and Delhi have more than doubled over the past 18 months, spurred by rising incomes and a firm stock market, but sales volumes are down by a third from a year ago as high prices and rising borrowing costs deter buyers.

The Reserve Bank of India (RBI) has raised interest rates seven times since March 2010 to curb stubbornly high inflation, further hurting demand.

India's top seven cities hold total office space of 280 million square feet, and this is expected to rise by another 50 million square feet in 2011.