The growing trend of start-ups in India too is a contributing factor in creating employment as well as office absorption, says Anshul Jain
Delhi-National Capital Region (NCR) has been ranked as the most expensive location for offices in India, followed by Mumbai, Kolkata, Pune, Chennai, Bengaluru, Hyderabad and Ahmedabad.
With rental values of almost Rs 430 square feet per month and cost of each workstation at over Rs 350,000 per annum ($5,392), Delhi-NCR is the 84th most expensive location for offices globally, according to Cushman & Wakefield's report "Office Space Across the World 2017".
Mumbai's Bandra-Kurla Complex has been ranked 163rd most expensive globally with the cost of one workstation at Rs 206,090, Kolkata's Central Business District (CBD) at 207th (Rs 95,036), Pune's CBD at 210th (Rs 84,963), Chennai's suburban south at 211th (Rs 77,020), Bengaluru's Outer Ring Road at 213th (Rs 75,098), Hyderabad's Madhapur at 214th (Rs 56,923) and Ahmedabad's SG Highway at 215th (Rs 40,211).
The international list is topped by Hong Kong, with per workstation annual cost at $27,431, followed by London ($22,665) and Tokyo ($18,111). The report has evaluated 215 global locations or prime office markets in each of the cities and ranks their occupancy costs per workstation including base rents and common area maintenance charges and workplace densities for newly developed or refurbished office space globally.
"Indian office spaces are competitive globally in terms of price, design and desk space. This, coupled with a strong talent pool, provides for a winning combination for entry and expansion of global companies in India. Our office space absorption is largely led by the services sector with IT-BPM making close to 50% of total office space requirements," Anshul Jain, country head and managing director, India, Cushman & Wakefield said in a statement.
The growing trend of start-ups in India too is a contributing factor in creating employment as well as office absorption, said Jain.
According to the report, the demand in the second most expensive location in India, Bandra-Kurla Complex in Mumbai, has been high thanks to companies from banking, financial services and insurance, consulting, information technology, information technology-enabled services (ITeS) sectors.
In Gurgaon CBD, the other major office market in Delhi-NCR, a workstation costs Rs 100,800 per annum. This place has a vacancy of sub-5% due to high demand and since 2013, the rentals have increased 45% due to consistent demand, mainly from IT, ITeS, and other sectors.
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