GROWTH OF INDUSTRIAL RENT HIGHEST IN MUMBAI

Mumbai has witnessed the world's highest (94.4%) increase in rentals of industrial space in 2007 from Rs 18 per sq ft per month to Rs 35 per sq ft per month ($10.88 per sq ft per annum). With this, the financial capital of the country leaped 11 positions to be 26th most expensive industrial locations in the world, said a global report on industrial space by real estate consultancy firm Cushman and Wakefield.

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 sq ft per month in December 2006 to Rs 18 per sq ft per month in December 2007. In IMT Manesar, the rentals went up by 30% to Rs 13 per sq ft per month from Rs 10 per sq. per month. Rentals in prime area like Delhi's Okhala Industrial Area also went up by 28.57% to Rs 45 per sq ft per month from Rs 35 per sq ft per month ($14 per sq ft 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 sq ft per month, in Sriperumbudur in Chennai by 18.5% to Rs 32 per sq ft 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 sq ft 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 sq ft per annum and in Tokyo $ 19.51 per sq ft per annum.

Okhala Industrial Area, with occupancy cost of $14.50 per sq ft per annum, is costlier than industrial space in Moscow, Frankfurt, Hong Kong and Beijing. The occupancy cost in Beijing is $ 7.31 pr sq. ft per annum