Going down from last year’s fourth place, Delhi’s upmarket business district of Connaught Place has become the world’s eight most expensive office location due to a weakened rupee in 2013.

A latest report by global property consultant Cushman &Wakefield, which ranks locations across America, Europe, Asia-Pacific, Middle East and Africa, said: “New Delhi’s Connaught Place fell four notches to settle as the eighth most expensive location in the world.”

London’s West End emerged as the world’s most expensive office market, retaining its position ahead of Hong Kong, which is ranked second.

Of the top ten markets, only London and New York have seen a rise in rental values, while most other top markets recorded a slowdown in rental values over the previous year. Moscow and New Delhi, however, recorded no change in rental values.

“Despite a stronger performance against most top markets, Connaught Place fell to the eighth position due to an appreciation in both the US dollar and euro against the Indian rupee in 2013. This caused a shift in New Delhi’s position in terms of global occupancy costs when measured on dollar or euro basis,” it said.

The report said rentals in Connaught Place remained stable because of limited activities in the location and will continue at a similar level as the market could have reached its peak rental level. The location continues to remain high on priority for sectors like BFSI, consulting, trade, and media. The demand for office space in Connaught Place is robust considering its proximity to government organisations, trading centres and retail location.

Cushman and Wakefield executive managing director (South Asia) SanjayDutt said the weakening of the rupee against the dollar/euro has made office markets in India favourable for international occupiers, while domestic occupiers have not seen any significant change in rental values. With a limited supply of Grade-A office space expected in near future, he said, Connaught Place will continue to command high rentals. However, the supremacy of Connaught Place may be challenged with newer corporate office locations in Gurgaon, which may provide better alternatives to New Delhi.