Mumbai slips in global office rent sweepstakes

London's West End continues to be the world's most expensive location for hiring commercial space while Moscow and Tokyo have risen two places each, pushing Mumbai to the fourth spot, according to the latest survey of global office rents by CB Richard Ellis.

Office space in Moscow costs an average of US $232.37 per square foot per year compared with US $299.54 in the West End of London, CB Richard Ellis said in the survey. The other costliest markets are Inner Central Tokyo, Mumbai and Outer Central Tokyo.

Office rents in the Russian capital jumped by an average of 93% in dollar terms in the 12 months ended March 31, the second-biggest gain among 173 cities tracked by CB Richard Ellis. Moscow overtook Mumbai, where rents gained 41%.

"Office occupancy costs are continuing to defy sluggish economic conditions and the credit crunch as they rise faster than global inflation," Raymond Torto, CB Richard Ellis's chief economist, said in today's report.

The cost of occupancy, which includes service charges and taxes, jumped 94% in Vietnam's Ho Chi Minh City, more than any other location. It was followed by Moscow, Singapore, Nicosia and Oslo.