Demand for office spaces in the medium to long term will remain strong in India’s top seven cities because of cost-effectiveness, with monthly average rental hovering just around $1–2 per square foot, according to Vestian.
In contrast, the monthly average rent in New York, London, Miami, Seattle, and Boston is $40–80 dollars per square foot, as per the data. Rentals in Hong Kong, Singapore, and Shanghai are $3–8 per square foot per month.
“The Indian office market has grown in the past decade due to robust demand from large multinational companies, primarily due to the cost benefits. The demand for office spaces in India is expected to be buoyant amid current macroeconomic uncertainty across the globe as companies are majorly focusing on optimising operational costs for their businesses,” said Shrinivas Rao, CEO, Vestian.
Multinational corporations’ preference to set up offices is chiefly driven by the substantial cost advantage associated with operating from the country, as the cost of occupancy and overall operational expenses in India are notably lower in comparison to many other countries.
Additionally, the availability of a high-quality talent pool at an affordable rate is also an important factor for MNCs to set up offices in India. Another factor is the financial advantage that lies in currency exchange rates, as they reduce the operational cost significantly.