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india: Demand for office space remains strong in India: Report

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 USD 1-2 per sq ft, according to property consultant Vestian.

The monthly average rent in New York, London, Miami, Seattle and Boston is USD 40-80 per sq ft, according to the data compiled by Vestian Research. Rentals in Hong Kong, Singapore and Shanghai are USD 3-8 per sq ft a month.

“Indian office market has grown leaps and bounds in the past decade due to robust demand from large multinational companies. These companies set up their operations in India to reap the cost benefits,” said Shrinivas Rao, CEO, Vestian.

Several multinational corporations have set up their offices in India to effectively manage and execute real-time tasks across the globe from their Indian base. This preference is chiefly driven by substantial cost advantage associated with operating from India, as the cost of occupancy and overall operational expenses in India are notably lower in comparison to many other countries.

“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 optimizing operational costs for their businesses,” Rao said.

The availability of high-quality talent pool at an affordable rate is also an important factor for MNCs to set up offices in India.Indian professionals have consistently demonstrated high efficiency, surpassing their counterparts in various parts of the world. An additional financial advantage lies in currency exchange rates as it reduces the operational cost significantly.The demand for office spaces in prominent global financial hubs such as New York, London, Boston, Brisbane, Melbourne, Hong Kong, and Singapore remain exceptionally high, resulting in fiercely competitive rental rates. In stark contrast, Indian cities exhibit an abundance of office space, leading to a more competitive pricing landscape.

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