The FINANCIAL --Rents in Mumbai’s skyscrapers are rising faster than those in any other prime Asian cities, according to the latest Skyscraper Index from Knight Frank. The index examines the rental performance of commercial buildings over 30 storeys, across 21 cities around the world, of which 10 cities are in Asia Pacific.
The index shows that rents in skyscrapers in Mumbai rose at 3.02% in the second half of 2015 and is expected to continue looking up in the next twelve months. Mumbai’s emergence as a top performer has benefited from growth in tech, as it surpassed financial and business services as the top occupier of office space in the second half of 2015, according to Knight Frank.
Rents in Hong Kong’s skyscrapers continue to be the highest in the Asia Pacific by some margin [3.03%], reaching US$263.25 per sq ft in H2 2015. Tokyo with 1.31% growth retains its second position, where skyscraper rents are currently US$128.75 per sq ft followed by Shanghai with 0.40% growth in third position. In the next twelve months, the growth in rents in Tokyo is likely to remain as is while Hong Kong and Shanghai will witness an increase.
Singapore was the only global city where skyscraper rents significantly decreased for the period, with the 4.76% drop attributed to over-supply and diminishing occupier confidence as a result of the slowdown in the Chinese economy.