International Office Space: The Rise of Bangalore
Imagine a glittering metropolis, buzzing from its busy streets all the way up to the tips of its skyscrapers, and home to the likes of world-dominators Microsoft, Intel, IBM, Goldman Sachs and Zynga.
You might be forgiven for picturing London, New York, Paris, Sydney…
But in fact, this is Bangalore.
Bangalore was once the first Indian city with electricity and, true to this forward-thinking heritage, it is now fast becoming the global base-of-choice for many rich and famous brands on the Indian subcontinent.
Side by side with its up-and-coming brethren, Mumbai and Delhi, Bangalore is emerging as one of the best and brightest in the search for office space abroad.
Experts relate that overall real estate growth in Bangalore is growing at a rate of 30% a year, generating jobs and wealth in a city that was once known as ΓÇÿPensionerΓÇÖs ParadiseΓÇÖ and is now referred to as ΓÇÿSilicon CityΓÇÖ.
So what of the average cost of office space in India? While it is a common assumption that the cost of labour and space in India would be significantly less than that in America or Britain, it may be that this is no longer the case.
In fact, Goldman Sachs recently signed a lease for a 1 million square foot campus in Bangalore for an incredible 600 million rupees a year ΓÇô thatΓÇÖs roughly ┬ú7 million, or the equivalent of a 15-year lease on New Bond Street in the heart of London.
Before Goldman Sachs signed the lease and made history, the biggest ever commercial real estate deal to have been made in India belonged to Cisco, who leased 700,000 square feet of space in Bangalore earlier in 2012.
With so many big names flocking to the city, the question is: who will be the next to break that record?