Confirmation of the decline in office rental prices has been provided by CB Richard Ellis. Their yearly "Global Occupancy Costs survey" shows that across the 170 cities surveyed, office occupancy costs fell 2.8% over 12 months up to March 31 2009. This compared to 8.0% rise in the 12 months up to September 30 2008.

Indian rents at a premium

While Mumbai (6th) and Delhi (12th) have seen rents drop due to slow down in demand, they still feature high in the list. Looking across Asia, only Tokyo (Inner Central) in 1st place, Tokyo (Outer Central), 5th place and Hong Kong (Central Business District) in 4th, have higher office rents and occupancy costs.

With financial centers taking the biggest hit, Singapore is the regions biggest loser, with a 34,4% decline in rental costs. Hong Kong (Citywide) also drops by 28.5%.

Infrastructure and amenities

CBRE believe India's high ranking reflects the shortage of prime office supply in the country. Anshuman Magazine, Chairman & Managing Director concludes that India needs to reduce office occupancy costs further to accelerate the market. He points out that infrastructure and amenities need to be "urgently" improved if India is to remain competitive.