Mumbai’s central business district Nariman Point has dropped to 15th most expensive CBD office locations from its previous 8th position, property consultants Cushman and Wakefield said.

This is also the first time in over six years that Mumbai fell out of the top 10 rent rankings.

Hong Kong, London and Tokyo maintained their top position as the top three, respectively on the annual chart. Beijing (5) and Sydney (7) came into the top ten for the first time in 2012, according to the annual report of Office Space Across the World 2012.

“The decline of Mumbai’s CBD rentals is reflective of two very important aspects; firstly, that other micro markets across Mumbai are witnessing a growth vis-a-vis the CBD. Secondly, that there is a certain amount of rationalisation in rentals in locations that had seen unprecedented rise in peak periods of 2007-08. Nariman Point has seen a steady and perhaps planned decline in the last few years as other micro markets like BKC and Lower Parel recorded a corresponding rise. BKC was consciously planned to decongest the CBD over a period of time and we see this phenomenon setting in.” Mr Ravi Ahuja, Executive Director, Cushman & Wakefield, India,

He added: “the trend of shift in focus from the CBD to other locations is also visible in the prime office markets in NCR and Bangalore where, suburban and peripheral locations are witnessing a rise in activities. Not only do these locations have a cost advantage over traditional locations, but they are also able to offer greater value in terms of social and civic infrastructure and also good talent pool from the vicinity.”

Beating expectations of most, Kolkata saw a striking growth rate in rental values in 2011 making it one of the fastest growing office markets in Asia.