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.
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.
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…