Mumbai ranks 15th on global office skyscraper rents index: Knight Frank's Skyscraper 2015 Report

MUMBAI: Mumbai, the commercial capital of the country, with office rents at $51.50 (Rs 3,241) per sq ft a year ranks 15th globally, according to the Knight Frank's Skyscraper 2015 Report. The study looks at the prime office rents of 18 markets across the globe.

The annual rentals work out to average of Rs 270 per sq ft a month.

The Skyscraper Index ranks cities according to a score system based on a range of criteria including skyscraper office rents and yields, the spread offered by investment yields compared to national bonds, the number of high rises built, and growth prospects for the city.

Among the 18 global property markets, Hong Kong boasts the world’s highest skyscraper office rents at $250.50 per sq ft a year, the report showed.

While Hong Kong’s large lead in annual rents reflects a low vacancy rate and constrained CBD area, New York is also closing fast. New York's Skyscraper prime office rents have increased by 20% to hit $150 a sq ft since July 2014, outperforming Hong Kong which increased by only 11.3%.

“We are now seeing the western cities erode the lead of big Asian centres in tower office rents. For premium floors with views, rents are rising in Hong Kong, but they are increasing much faster in New York. Similarly, London is closing the gap on Tokyo," said James Roberts, Chief Economist at Knight Frank.

“Economic growth prospects for this year favour locations like New York and London, so I see these cities stepping up competition on the Asian centres. Many people like to say that the balance in the global economy is shifting from west to east, but certainly skyscraper rents provide another indicator that shows this is not entirely the case,” he added.

In 2009, there were a total of 19 skyscrapers in the world with heights of over 1,000 feet. Today, there are 79 of them – 40% of which are in China; 28% of which are in the UAE.