Tokyo has uprooted London for the world’s costliest office market space. Mumbai is at number 6, while Delhi is at number 12. This is according to the C B Richard Ellis’s (CBRE) report, which keeps track of cost of office occupancy in around 170 cities around the world.

Tokyo’s Inner Central District has uprooted London’s West End as the costliest office market. West End is now in the second place. Moscow, Hong Kong’s Central Business District (CBD), and Tokyo’s Outer Central District complete the top five rankings.

Anshuman, Chairman and MD, CBRE, South Asia, said the ranking projects the decrease in rentals in the last six months. The fact that Mumbai and Delhi are placed 10^th and 12^th, respectively, reflects the shortage of prime office space in India. To reduce the costs of occupancy, one needs to improve the infrastructure. This would make India more competitive.

In some cases, the global occupancy costs have come down by 20% or more in the past year. Singapore had the largest year on year reduction in occupancy costs with a dip of 34%.

Raymond Torto, Global Chief Economist, CBRE, said the world’s office markets, especially those with presence of financial industries, have been affected by the global economic meltdown.

Those aspiring to have a prime office space are at an advantage because the office markets are less expensive now, than they were a year ago.