Mumbai Records World's Biggest Rise in Industrial Rentals

Hyderabad, India (PressExposure) April 23, 2008 -- Adding to the woes of corporate world battling with soaring input costs and deteriorating consumer sentiments, India’s financial capital Mumbai has emerged as home to the biggest increase in industrial property rents across the world.

According to a new study conducted by US-based real estate consultancy major Cushman & Wakefiled, the industrial property rentals nearly doubled in Mumbai in 2007 from the previous year levels, marking a bigger rise than in places like San Fransisco and Singapore.

Mumbai is followed by Istanbul with a rise of 60 per cent, while IMT Manesar area near New Delhi came at the fifth position across the world with nearly 30 per cent rise in the rentals, the study found.

San Fransisco Peninsula and Singapore came at seventh and eighth position respectively.

In the overall most expensive location list, three London locations — Heathrow, Hammersmith and Gatwick — were the three most expensive places, followed by Dublin and Tokyo in the top five. None of the Indian locations is named in the top 10 most expensive places.

The prime rents rose by an average of more than six per cent across the world, as against 4.5 per cent increase in 2006, Cushman & Wakefield said, adding that “one of the key trends in the industrial market remains the movement of manufacturing operations to cheaper locations such as India, China, South America and Central and Eastern Europe (CEE).”

“Asia Pacific has shown the most buoyant growth over the past year. The continuing strong economic expansion of India and China, coupled with the ongoing positive performance of markets such as Vietnam, Taiwan, Singapore, Australia and New Zealand, drove up the rents by just under 15 per cent annually,” it added.

“The credit crunch acting to slow the markets in North America and Europe has not had much impact on the region at the end of 2007,” Cushman & Wakefield said.

Within Asia-Pacific, Singapore came at third after Mumbai and New Delhi-IMT Manesar in annual rent growth and was followed by Pune and Chennai in the top five. Bangalore- Bommasandra area came at sixth, while Bangalore-Jigani saw the ninth biggest rental rise in the region.

“Overall average annual rental uplift in Asia-Pacific was 14.2 per cent. This was the highest rental growth of all the regions and well above the global average,” the report said, adding that “rental growth was driven mainly by Indian locations, accounting for four of the top five markets in terms of regional rental growth.”

India has seen demand outstrip supply as the result of continued economic expansion, it noted. Tokyo emerged as the most expensive location in Asia-Pacific, followed by Sydney, Singapore, Melbourne, Hong Kong, Mumbai, Auckland, Chennai, Taipei and Chonburi-Rayong.

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Press Release Submitted On: April 16, 2008 at 4:46 am
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