Bengaluru and New Delhi 3rd and 4th fastest growing office markets in world

Bengaluru (Bangalore) is the third fastest growing office market globally in terms of prime rental values for office space, mainly due to continued supply crunch, a recent survey found.

According to a global study by property consultant Knight Frank, the estimated growth in office rental values in Bengaluru by end of 2019 is expected to be 6.6 percent.

Bengaluru is the “Silicon Valley” of India, employing 35% of India’s 2.5 million IT professionals. But it is also big in food (Cafe Coffee Day), pharma and biotechnology, aerospace, cars, and is home to Ola Cabs (competitor to Uber).

The report evaluates 33 global cities and gives insight on office rental growth – it noted that New Delhi, in fourth position, is expected to see a rise of 6.5 percent in prime rental values in 2019. Delhi is more than a government centre – it is big in consumer goods manufacturing, IT, telecoms, banking, construction, retail and tourism.

connaughtplace

Delhi’s Connaught Place

Bengaluru is impacted by demand from the IT/ITeS and the start-up sectors, so the lack of quality space in key markets is pushing the rentals up.

BangaloreInfosys

Infosys headquarters in Bengaluru

Mumbai is however expected to see stable rentals in 2019 with an outlook of marginal rental growth due to anticipated supply for 2019 in the prime market.

Where would you locate your India headquarters? One challenge is that with so much regulation and the need to deal with government, wherever your HQ is based, your people will have to travel often to New Delhi.

But options exist outside of these three major cities and it is worth evaluating tier two cities.

Please share your thoughts and experiences…

Author: Stephen Manallack

Former President, Australia India Business Council, Victoria and Author, You Can Communicate; Riding the Elephant; Soft Skills for a Flat World (published by Tata McGraw-Hill INDIA); Communicating Your Personal Brand. Director, EastWest Academy Pty Ltd and Trainer/Speaker/Mentor in Leadership, Communication and Cross Cultural Communication. Passionate campaigner for closer western relations with India. Stephen Manallack is a specialist on “Doing Business with India” and advisor/trainer on “Cross-Cultural Understanding”. He is a Director of EastWest Academy Pty Ltd which provides strategic advice and counsel regarding business relations with India. A regular speaker in India on leadership and global communication, his most recent speaking tour included a speech to students of the elite Indian university, Amity University, in Noida. He also spoke at a major Federation of Indian Chambers of Commerce and Industry (FICCI) global summit, the PR Consultants Association of India in Delhi, the Symbiosis University in Pune and Cross-Cultural Training for Sundaram Business Services in Chennai. He has visited India on business missions on 10 occasions and led three major trade missions there. He provides cross-cultural training – Asia and the west.

One thought on “Bengaluru and New Delhi 3rd and 4th fastest growing office markets in world”

  1. Today Bengaluru is referred to as the “Silicon Valley of India” in view of its role as the country’s leading information technology (IT) exporter. Bengaluru is a demographically diverse city and the second fastest growing major metropolis in the country. It has one of the most highly educated workforces in the world. It is home to many educational and research institutions in India, such as Indian Institute of Science (IISc), Indian Institute of Management (Bangalore) (IIMB), International Institute of Information Technology, Bangalore (IIITB), National Institute of Fashion Technology, Bangalore, etc. Numerous state-owned aerospace and defence organisations, such as Bharat Electronics, Hindustan Aeronautics and National Aerospace Laboratories are located in the city. The new name given to Bengaluru is the “Start-up” capital. Today well known companies as Infosys, Wipro Technologies, Mindtree etc are doing a lot of advanced Information Technology projects all over the world from Bengaluru. After two decades of domination by IT Services and regional offices of global technology companies, top talent began building new age firms between 2000-present. Flipkart, having originated in Bangalore, acquired several other e-commerce companies originated in Bangalore like Myntra and was itself eventually acquired by Walmart in 2018 for close to $20 Billion. Several other unicorns have their origins ln Bangalore like Swiggy, Ola Cabs, InMobi, Quickr etc. Bengaluru is also quite strong in the area of BioMedical Engineering and Biotechnology. Biocon is one of India’s largest bipharmaceutical companies which also owns a majority stake in India’s largest Clinical Research Outsourcing (CRO) company Syngene International that works with global pharmaceutical majors. Strides Arcolab manufactures pharma products for emerging markets and is a listed entity in the Indian Stock Markets. The Himalaya Drug company makes several pharma and beauty care products and is headquartered in Bangalore.

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