Three Indian metros – Bengaluru, Mumbai and Delhi – earned the highest prime office yields, among 34 leading international markets, according to a report by Knight Frank, titled ‘Global Cities: The 2018 Report’. Bengaluru topped the table with 10 per cent yields, followed by Delhi (9.20 per cent) and Mumbai (8.50 per cent).
Prime office yields index
|Ranking||City||Prime office yield|
Commenting on the findings, Shishir Baijal, chairman and managing director, Knight Frank India, said, “Our spaces are being redefined and one of the most disruptive facets of the change in spaces, where we work, live and the overall urban ecosystem, would be acquisition of talent. Organisations would have to thoughtfully handpick global cities, zoom into smart office locations within them and tastefully shape these spaces, in sync with the fascinations of the crème-de-la-crème workforce making the world work today. It is needless to state that the evolution, would be driven by technology and smart intelligence.”
- Bengaluru’s Whitefield emerged as the most affordable tech district, among 29 global tech hubs in the world.
- Ranking 25th on the Tech Districts Index, Gurugram’s Cyber City (USD 20.40) beats Madrid’s Julian Camarillo area (USD 13.65) and Kuala Lumpur’s Cyberjaya Office Market (USD 11.55) in office rents.
|Sr no||City||Tech District||Prime Rent (US$ per sq ft)|
|4||Bangkok||CBD : Rama 1, Sathorn, Sukhumvit Soi 21||74.25|
|5||Paris||1st, 2nd and 9th Districts (Cité Financière)||74.00|
|7||Los Angeles||Playa Vista||62.00|
|10||Washington DC||NoMa (North of Massachusetts Avenue)||51.25|
|12||Seattle||South Lake Union||44.00|
|13||Dubai||Dubai Media City||43.55|
|16||Toronto||King & Spadina||39.90|
|17||Hong Kong||Cyberport, Pokfulam||36.90|
|19||Chicago||Fulton Market District||35.00|
|23||Shanghai||Zhangjiang Hi-Tech Park||27.50|
|24||Mexico City||Santa Fe||27.30|
|25||Delhi||Gurugram (Cyber City)||20.40|
|26||Seoul||Guro-gu (Guro Digitial Complex) & Geumcheon-gu (Gasan Digital Complex)||14.65|
|27||Madrid||Julian Camarillo area||13.65|
|28||Kuala Lumpur||Cyberjaya Office Market||11.55|
“India’s office market witnessed a stellar run in 2016, as compared to the recent past. It is also a fairly accepted fact that India is home to some of the most affordable Central Business Districts in the world. The findings of the Global Cities: The 2018 Report reinstates the fact. Bengaluru’s Whitefield is a case in point. Despite the influence of global headwinds on mainstream occupiers, emerging trends such as co-working space providers, have continued to whip up demand in the supply-deprived market,” said Viral Desai, national director, occupier solutions group, Knight Frank India.
- Mumbai ranks 6th on the Skyscrapper Index growth in six months to Q2 2017.
- Prime office rents in the upper floors of high rises in Mumbai see 1.8% growth, among the top six international rent appreciating markets.
- India’s financial capital pips iconic global destinations such as London (0.0%), Hong Kong (1.1%),
- Tokyo (0.0%) and Dubai (0.0%).
|Sr no||City||Rent (US$ / sq ft / per annum)||% growth in six months to Q2 2017*||Growth rank|
|12||Paris (La Défense)||$58||0.0%||10|
Other key findings
- Delhi emerged as the most expensive office market in India on the ‘What USD 100 million could buy?’ index followed by Mumbai.
- USD 100 million can also buy more than half a million sq ft of prime office space in Bengaluru, the highest in the world.
- Bengaluru emerged as the most valued destination on the Employment and Property Cost Index with total cost (salary + property) of USD 1,264,000.
- Bengaluru and Mumbai top the chart among 10 future cities in terms of eating out spends. The two cities also feature among the top 5 future cities in terms of households with significant incomes.
According to Samantak Das, chief economist and national director – research, Knight Frank India, “Desires of the talent pool and rising disposable incomes, are set to shape our urban environments in the near future. We have already seen glimpses of the transformation with a shift in the expectations of mainstream occupiers. Today, we see that the office space expectations of mainstream occupiers resembling those of niche sections, such as the start-up fraternity or the Googles of the world. The global trend holds true for select Indian cities such as Bengaluru and Mumbai.”