Bullish Outlook For India's Top Seven Office Markets
Demand for office spaces in the medium to long term will remain strong in India's top seven cities because of cost-effectiveness with monthly average rental hovering just around USD 1-2 per sq ft, according to Vestian. In sharp contrast, the monthly average rent in New York, London, Miami, Seattle and Boston is USD 40-80 per sq ft, according to the data compiled by Vestian Research. Rentals in Hong Kong, Singapore and Shanghai are USD 3-8 per sq ft a month. Vestian noted that several multinational corporations have set up their offices in India to effectively manage and execute real-time tasks across the globe from their Indian base. This preference is chiefly driven by substantial cost advantage associated with operating from India, as the cost of occupancy and overall operational expenses in India are notably lower in comparison to many other countries. The availability of high-quality talent pool at an affordable rate is also an important factor for MNCs to set up offices in India. Indian professionals have consistently demonstrated high efficiency, surpassing their counterparts in various parts of the world. An additional financial advantage lies in currency exchange rates as it reduces the operational cost significantly. The demand for office spaces in prominent global financial hubs such as New York, London, Boston, Brisbane, Melbourne, Hong Kong, and Singapore remain exceptionally high, resulting in fiercely competitive rental rates. In stark contrast, Indian cities exhibit an abundance of office space, leading to a more competitive pricing landscape. Currency exchange rates exert a significant influence on the relatively lower office space rentals in India. This dynamic is integral to understanding the cost differential between Indian markets and their global counterparts. India enjoys a distinct competitive advantage due to its comparatively low labour costs when juxtaposed with many other countries. This affordability extends to various facets of business operations, including the acquisition of office spaces. The Indian government has proactively introduced a range of initiatives aimed at attracting foreign investment and spurring business growth. These measures include incentives and tax benefits, which collectively serve to reduce the overall cost of conducting business, including expenditures related to office space.
Tags : demand office spaces India USD Vestian New York London Miami Seattle Boston Hong Kong Singapore Shanghai multinational corporations MNC Indian professionals Indian Government