Nariman Point drops to 15th most expensive business district globally

Reflecting the falling trend in property prices across Mumbai, India's financial capital has dropped out of the world's top 10 most expensive cities in terms of office space for the first time in six years, according to the annual report of global real estate consultants Cushman & Wakefield.

Nariman Point, the city's premier office district, fell to the 15th place from its previous eighth position as the most expensive central business district (CBD) in the world, says the report, 'Office space across the world 2012', released on Tuesday.

Hong Kong, London and Tokyo maintained their positions as the top three on the annual chart.

Beijing and Sydney entered the top ten list for the first time – at the relatively high levels of 5th and 7th respectively.

Ravi Ahuja, executive director, Cushman & Wakefield, India, said in a statement, "The decline of Mumbai's CBD rentals is reflective of two very important aspects - firstly, that other micro markets across Mumbai are witnessing growth vis a vis the CBD; and secondly, that there is a certain amount of rationalisation in rentals in locations that had seen an unprecedented rise in the peak periods of 2007-08.

''Nariman Point has seen a steady and perhaps a planned decline in the past few years as other micro markets like BKC (the Bandra-Kurla Complex) and Lower Parel recorded a corresponding rise. BKC was consciously planned to decongest the CBD and we see this phenomenon setting in."