Hong Kong's Central Business District ranks second to London's West End as the world's most expensive office market.
According to research published by real estate firm Cushman & Wakefield, the top ten most expensive office rental cities ordered from highest to lowest are London, Hong Kong, Rio de Janeiro, New Delhi, Tokyo, Moscow, Beijing, New York, Sydney, and Paris.
Globally, the office market witnessed prime rents rise by 3% in 2012, but this was largely driven by the impressive levels of growth in South America, particularly Brazil and Colombia. However, although prime rents expanded on a global basis, many markets suffered under continuing economic uncertainty and this led to increased occupier caution.
Cushman & Wakefield expects the trend of companies proactively trying to reduce office occupancy costs to continue as the overall global economic outlook remains unsure.
Beijing, which has experienced previously two years of massive prime rental growth, drops one place to seventh from previous surveys in the global ranking as rents remained unchanged over the last 12 months. Surplus space has provided a number of alternatives in an increasingly tenant-led market in the city.