Country's financial hub Mumbai has joined the league of the costliest global cities like New York and Tokyo, driven by supply constraints and rise in absorption rate of commercial spaces, a survey says.

The BandraKurla Complex micro-market in Mumbai saw the highest rentals in the country, with asking rates of around Rs 425 per sq ft per month; a whopping 80 per cent increase over the same period last year, commercial real estate services firm CB Richard Ellis said in its latest survey.

A tight supply pipeline in this market and a keen interest from financial sector companies in Mumbai is being seen as the main reasons for the city joining the ranks of New York and Tokyo as the most expensive office markets in the world, the survey added.

However, amid the hype in the Indian real estate market, MNCs are raising concerns over the viability of the costs. According to CBRE, the overheated markets of Mumbai and Gurgaon (NCR) are in for a marginal rationalisation this year, with significant new supply expected towards the end of the year.

In Bangalore, consolidations and rentals are likely to remain stable through the year, while Pune and Hyderabad would continue to find favour with growing companies and rentals in these markets are also expected to remain stable. The Chennai office market appears to be headed for a marginal correction in prices, but this will not take away the steady demand for space by tenants in the city.