The monthly office average rents across top-7 cities in India are the most cost-effective with rent hovering between just $0.4 per square feet (nearly Rs 33) in Kolkata and $2 (about Rs 166) in Mumbai. The office rentals are the highest in New York, London, Miami, Seattle, Boston and Hong Kong in the world reaching up to $60 a month per sqft, according to data compiled by commercial real estate services provider Vestian.
“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,” Vestian said in a statement.
The monthly average rent in New York, London, Miami, Seattle and Boston is $40-80 per sq ft, according to the data compiled by Vestian Research. Rentals in Hong Kong, Singapore and Shanghai are $3-8 per sq ft a month.
Shrinivas Rao, CEO of Vestian, said, “The Indian office market has grown leaps and bounds in the past decade due to robust demand from large multinational companies. These companies set up their operations in India to reap the cost benefits. The demand for office spaces in India is expected to be buoyant amid current macroeconomic uncertainty across the globe as companies are majorly focusing on optimizing operational costs for their businesses.”
Vestian said several MNCs 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,” it said.
The availability of a high-quality talent pool at an affordable rate is also an important factor for MNCs to set up offices in India, it said.