Bengaluru is the world’s most affordable technology hub as per a study conducted by a UK-based realty consultancy firm Knight Frank.
According to a report by Deccan Herald, among the top 29 technology hubs covered in the study, Bengaluru is the cheapest in terms of office rentals. Gurugram comes second.
Whitefield is the most affordable technology district, with a rent of $9.65 (Rs 632) per sq. ft, according to the Global Cities 2018 Report produced by Knight Frank.
Bengaluru also earned the highest prime office yield with 10% yield, followed by Delhi with 9.20% and then Mumbai with 8.50%. These Indian cities left prime markets like Bangkok (7%) and Kuala Lumpur (6.5%) behind, a report by Business Today states.
Globally, London is the costliest in terms of office rental values at $90.75 (Rs 5,940) per sq. feet. Bengaluru is the most valued destination on the employment and property cost index, the DH report adds.
The survey by Knight Frank reveals that the cost to a firm (salary and property) for employing 100 people in Bengaluru comes up to $1.3 million (Rs 8.27 crore approximately) annually. This is the lowest in the world, Business Today adds.
Zurich in Switzerland, a global centre for banking and finance, is the costliest on this front. The cost to a firm employing 100 people in Zurich comes to $7.9 million (about Rs 52.02 crore).
Bengaluru is the only Indian city on the list of 19 most valued destinations on the index. “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,” Viral Desai, national director, occupier solutions group, Knight Frank India, told DH.
The affordability in Bengaluru can be ascertained from the fact that $100 million (Rs 654.59 crore) can buy up to 5,12,385 sq. feet of prime office space, the highest in the world.
Bengaluru also generates the highest rental yield. The city generated a yield of 10% in the 2016-17 fiscal. The high yield is attributed to lower property values in Bengaluru, the DH report states.
Bengaluru is also featured in the top 10 cities in terms of projected eating-out expenses between 2017 and 2027.
Bengaluru tops the list with 176.9%, while Mumbai came in second with 136%.