Mumbai has witnessed the world’s highest (94.4%) increase in rentals of industrial space in 2007 from Rs 18 per square feet per month to Rs 35 per square feet per month ($10.88 per square feet per annum).
With this, the financial capital of the country leaped 11 positions to be 26th most expensive industrial locations in the world. The rise in rentals of industrial space at Ranjangaon in Pune and IMT Manesar in the National Capital Region is fourth and sixth highest in the world. In Ranjangaon, the rentals went up from Rs 12 per square feet per month in December 2006 to Rs 18 per square feet per month in December 2007.
In IMT Manesar, the rentals went up by 30% to Rs 13 per square feet per month from Rs 10 per square per month. Rentals in prime area like Delhi’s Okhala Industrial Area also went up by 28.57% to Rs 45 per square feet per month from Rs 35 per square feet per month ($14 per square feet per annum). Rentals in other areas in India have also gone up sharply. According to the report, rentals of industrial space in Hinjewadi in Pune has gone up by 18.75% to Rs 38 per square feet per month, in Sriperumbudur in Chennai by 18.5% to Rs 32 per square feet per month. Within Asia-Pacific, Singapore came at third after Mumbai and 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. London retained its title as the world’s most expensive industrial location in the world with total occupancy cost at $28.91 per square feet per annum followed by Dublin, which jumped two places in the global ranking of occupancy costs to second place and Tokyo at third place. Occupancy cost in Dublin is $ 21.81 per square feet per annum and in Tokyo $ 19.51 per square feet per annum. Okhala Industrial Area, with occupancy cost of $14.50 per square feet per annum, is costlier than industrial space in Moscow, Frankfurt, Hong Kong and Beijing. The occupancy cost in Beijing is $ 7.31 pr square feet per annum.
