Hyderabad, world’s second most affordable office market
Bangalore- According to a survey, Hyderabad is the second most affordable office market in the world after Surabaya which is in Indonesia. Cities like Chennai and Pune are in the fifth and sixth positions for the most cheapest office destinations for the foreign firms looking to start up operations.
According to a survey consultant, the Tier II cities in India and China are dominating as the top-10 most affordable markets globally. This data was collected by measuring the occupancy costs per workstation in 126 business districts o in 49 countries in the year 2012.
The year 2012 witnessed a drop in office space absorption rate in many cities, perhaps the office space absorption is expected to be stable in the current year due to the overall improvement in the global and domestic economies. Also the rentals are expected to appreciate all over the country this year.
The survey also shows that the costs of companies is between $2,620 (about Rs 1.41 lakh) and $9,810 (Rs 5.27 lakh) per annum per employee among the top six Indian cities when compared with $23,500 (Rs 12.63 lakh) per workstation in London West End.
Apart from the above cities, China’s Chongqing and Nanjing along with Cancun in Mexico are also among the ten most affordable markets. The reports show that a large number of markets in North Asia and India witnessed a 2-10 percent increase in occupancy costs. Owing to this, the occupiers in many markets are compelled to increasingly consider secondary space especially in prime spaces to cut costs.
In the year 2013, the vacancies across the state are expected to increase with the total commercial office space absorption for the quarter, December 2012 was 6.8 million sq ft.
Another realty expert stated that most companies are looking to consolidate and relocate to less premium locations and they are looking to reduce real estate costs comprising about 22-27 percent of the total operational expenses, which is the second biggest component after human resource.
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Office space absorption decline in 8 cities by 23%
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