Nov 21, 2014
Following successful endeavours in Hyderabad and Bengaluru; iKeva, a serviced office space provider will soon be launching its third centre…
Low office space rentals and high workspace productivity comes from 5 Indian cities which are also ranked among the top 10 least expensive office space markets in the world. Deemed as the world’s most affordable office space market by the DTZ Global Research report is the city of Hyderabad. The report gathered by the global property consultants further states that the decline of the Indian Rupee along with the diminishing office space rentals in Hyderabad is what resulted in it taking over Surabaya (Indonesia) as the least expensive office space market.
Based on the report’s findings, the occupancy’s costs were below USD 3,000 per workstation per year in 2013. Today however the list of the ten least expensive office space markets only consist of India and China’s Tier II markets. This time around Hyderabad’s total cost of occupancy per workstation per year has been ~USD 1,250.
“In India, we forecast rising demand from the IT sector and high inflation to drive occupancy costs to their highest level over the next two years with Hyderabad, Bengaluru and Pune projected to see costs increase above 7% per annum”, said Mr. Dominic Brown, Head of South East Asia & Australia and New Zealand Research.
The steady flow of customers and clients launching their businesses has resulted in the demand. Chennai continues to retain its third position in the list of affordable office locations globally, followed by Pune and Bengaluru in the fourth and fifth places respectively. Entering the list at the eighth position this year is Kolkata.
The implementation of serviced office spaces in these cities have undoubtedly escalated productivity at the work place. Furthermore, Mr. Brown states, “Indian Tier II markets will continue to offer occupiers the world’s most affordable office space, having started from a very low base.”
According to the report, the office space market in South Asia is fairly priced which is mostly due to occupancy costs and productivity being positively correlated as well as co-dependent.
With office space rental being made available with well-connected transport systems for both intra and intercity commutes, the cities have also begun to embrace the technology, manufacturing, service and real estate industries. Adopting methods that are cost efficient as well as business savvy could perhaps assist Hyderabad, Bengaluru and Chennai in becoming the most sought after cities to start one’s business rather than just being the ‘low budget office space market’.
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