1. London's West End
The financial hub in London's West End continued to retain its position as the world's most expensive office market. At $299.54 per sq. ft. per annum, London's West End remained the most expensive office market.
Ho Chi Minh City in Vietnam had the fastest-growing occupancy costs during this period, up 94%. Ho Chi Minh City jumped from 45th to 23rd most expensive globally, with occupancy costs rising to $85.84.
2. Moscow
With the office rentals at $232.37 per sq feet, Moscow is the second most expensive office market. With a near-doubling of occupancy costs, Moscow rose four places to the second spot.
The economy was robust in the first quarter of 2008, says CBRE. The rentals are on par with the levels seen on 2007. A strong rental growth is forecast for Moscow city.
In terms of fastest-growing occupancy costs, Moscow's rates are up at 93 per cent, followed by Singapore at 86 per cent. Overall, EMEA (Europe, Middle East and Africa) dominated the list of markets with the fastest growing occupancy costs, accounting for five of the top 10 and 19 of the top 50 markets.
Worldwide, 88 per cent of the 173 office markets monitored posted higher occupancy costs.
3. Tokyo
Tokyo (Inner Central) is the third most expensive office mart with rentals at $220.25. Market conditions remained tight and the business prospects weak affecting rentals in the city. A large number of businesses put expansion plans on hold.
There is a slowdown in the rental growth compared to rentals in 2007. However, Asia's commercial sector remained stable in the first quarter of 2008. There has been a good demand for office spaces from domestic and multinational companies across Asian markets.
4. Mumbai
Mumbai has slipped to the fourth position from the second slot in February though rentals are at an high of $210.97.
The rentals in Mumbai are higher than cities like Paris, Dubai and Singapore.
"The drop is not due to rentals in Mumbai falling, but because of a significant increase in rentals in London and Moscow," said Anshuman Magazine, chairman and managing director, CB Richard Ellis, South Asia.
The demand for office spaces continue to be high in the Indian metro cities.
5. Tokyo (Outer Central)
Tokyo's Outer Central region stands at the fifth position with rentals hovering at $175.35.
Asia Pacific had 11 markets in list of 50 fastest growing places in terms of occupancy costs with Singapore seeing a growth of 86 per cent and Mumbai at 41 per cent. Perth, Australia, joined the top 50 most expensive, coming in at number 41.
6. London (City)
London city bags the 6th position with rentals hitting $164.18. The sub-prime mortgage crisis hit the financial activity in the UK.
This lead to a fall in business volumes and employment. Though rentals grew in the city, central London and other cities saw occupancy levels fall compared to 2007.
The central London prime index fell for the first time in 4 years by 2.1 per cent.
7. New Delhi
As the Indian economy booms, more cities are finding a place in the expensive cities' list. New Delhi has entered the top 10 list at the 7th position.
The office rentals are at $145.16. The occupancy rates in the Asia Pacific region are growing at an average of 37.6 per cent among the region's eleven places that have made it to the fastest growing rentals' list.
8. Paris
Paris, the world's fashion capital, with rentals at $141.98 is at the 8th position among the most expensive office spots.
A general slowdown was evident in the market with less business activity.
The city saw fewer lease renewals leading to lower occupancy levels.
9. Singapore
The bustling city of Singapore is ranked ninth with an occupancy cost of $139.31.
The office leasing market continued to be on a high with expansions and relocations.
The prime rents averaged at $16 per square feet per month, an increase of 6.7 per cent quarter-on quarter. The market saw an increase of IT firms, banks and financial institutions.
10. Dubai
Dubai made it to the list of the 10 most expensive office markets' list for the first time.
At number 10, with an occupancy cost of $128.49, Dubai is a hot favourite for many companies.
The demand for office space is projected to double in 2008.
The real estate sector growth is boosted by foreign investment, with individuals and companies from other countries comprising 60-70 per cent of the buyers.
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