Authors: Dezshira & Associates, http://www.dezshira.com/
Market prices for leasing or renting an office space not only differ from one city to another but also within the city. Many factors affect the rent of a place such as location, building amenities, lease term, number of seats, connectivity options, layout, etc.
The following chapter is intended to give a brief overview of the most important aspects when deciding on a suitable location, including the following aspects:
- Renting an Office
- Real Estate Developers
- Real Estate Agents
- Co Working Spaces
- National and Local Contacts
Most of the startups in India are originating from the Metropolitan cities. Top cities housing startups in India are Bengaluru, Delhi NCR and Mumbai. Nearly two-thirds of all startups are from these three cities. Hyderabad, Pune, Chennai, and Kolkata are other notable cities which are home to some promising startups.
Renting an office
Within the cities, there are several areas where office buildings / towers have formed corporate clusters. Prominent areas in Delhi NCR, Mumbai, and Bengaluru where an office space can be sought include:
- Delhi NCR
- Connaught Place – Considered to be one of the costliest places to rent an office space in India, Connaught Place is a central business district of the capital and one of the largest financial, commercial, and business centers of Delhi. Average rent rates usually start from INR 140-160 per sqft.
- NehruPlace – It is a large commercial, financial and business centre in Delhi. Office spaces and hotels are easily available in this part of the city. It is regarded as the center for small scale IT services and IT hardware equipment. Average rent rates usually start from INR 75-85 per sqft.
- Saket – It has become one of the most popular destinations for shopping and office spaces in Delhi. Its proximity to residential areas such as Greater Kailash, Panchsheel Enclave, CR Park, and Malviya Nagar makes it a commute friendly place. Average rent rates usually start from INR 90-100 per sqft.
- Netaji Subash Place – It’s one of the biggest business hubs of North Delhi. It has a good mix of office space and retail outlets. Average rent rates usually start from INR 70-85 per sqft.
- Gurugram – Gurugram has become a leading IT and industrial hub with the third-highest per capita income in India. As Gurugram is a satellite city of Delhi, there are many areas where an office space can be set up. Average rent rates usually start from INR 100-110 per sqft on MG Road, INR 90-100 per sqft on Golf course road, INR 80-100 per sqft in DLF Phase 1-5. Lower rates can be expected towards Manesar and Sohna roadside.
- Noida – Being a satellite city of Delhi, it is part of the National Capital Region of India. It has also become a prominent center for manufacturing and IT companies. Average rent rates usually start from INR 50-60 per sqft.
- Bandra Kurla Complex – BKC is a commercial hub in the city of Mumbai. It houses several organisations such as Citibank, Amazon.com, ICICI bank, etc. Average rent rates usually start from INR 150-170 per sqft.
- Andheri East – The railway station in Mumbai divides Andheri into Andheri East and Andheri West. Andheri East is one of the prominent business hubs in Mumbai and hosts several notable companies such as Syntel, Jet Airways, Abott Healthcare, etc. Average rent rates usually start from INR 90-110 per sqft.
- Nariman Point – House to some of the most prominent financial and business institutions in India, Nariman Point is a business district in South Mumbai and is one of the most expensive locations in the world for renting / purchasing office space. Some of the companies located here are Boston Consulting Group, Royal Bank of Scotland, JP Morgan, Dezan Shira & Associates, etc. Average rent rates usually start from INR 160-180 per sqft.
- Fort Area – As a business district, it is the heart of the financial area in the city with institutions such as Bombay Stock Exchange, Reserve Bank of India, among others having their headquarters here. Average rent rates usually start from INR 130-140 per sqft.
- Thane – Many small and medium companies and corporates find Thane as the best place to start their operations. It is in the eastern suburbs of the city and has cheaper rentals than South Mumbai. Average rent rates usually start from INR 80-90 per sqft.
- Koramangala – From e-commerce giant Flipkart to major cab service provider Ola, this place in South Bangalore is home to many Indian startups. Also some German companies such as Bosch are located here. Average rent rates usually start from INR 55-60 per sqft.
- Indiranagar – One of the Bengaluru’s newer and hipper areas, it is a commercial hub and is located in east central part of the state. Startups such as YourStory have their office here. Rates may be slightly more expensive when compared with other areas. Average rent rates usually start from INR 60-65 per sqft.
- Whitefield – It has several IT parks including the famous International Tech Park. Big IT corporates such as SAP, Accenture, IBM, HP, etc. have set up their offices in this part of the city. Average rent rates usually start from INR 55-60 per sqft.
- Marathahalli – It is a residential as well as commercial locality, situated in the south-eastern part of Bangalore. It has a smaller number of IT parks. Average rent rates usually start from INR 50-55 per sqft.
- ElectronicCity – ElectronicCity is the Information Technology hub of the state and is one of India’s largest electronic / IT parks with home to major IT companies Infosys, TCS, HCL. Also non-IT companies such as ZEISS are located here. Average rent rates usually start from INR 50-60 per sqft.
Above mentioned prices are just a rough estimate. Prices may vary considerably because of several parameters such as building condition, office amenities, real estate market condition, lease period, area rented, etc.
Available office space and the associated rental price can be checked on popular real estate websites of India such as 99Acres, Magicbricks, Quikr, JLL, etc.
Real estate developers
Real estate development firms have constructed commercial properties (e.g. commercial towers, IT parks) in major Indian cities like Delhi, Bangalore, Hyderabad, Mumbai, Chennai, Pune, Kolkata, etc. Top brands and multinational firms have offices in these commercial hubs. Following are some of the prominent real estate developers in India with some of their well-known commercial projects like DLF, Unitech or Godrej:
|Developers||Cities||Prominent existing projects||Companies present||Upcoming projects|
|DLF||New Delhi, Gurugram, Chennai, Hyderabad,
Kolkata, Chandigarh, Chennai
|Deloitte, Ericsson, Accenture, Cvent, Pepsi||DLF
IT Park, Chennai
Infinity Towers, GurugramDLF
Plaza Tower, Gurugram
Tech Park, Hyderabad
|Cognizant, Rockwell, Genpact, Hitachi|
|Nestle, HP, GlaxoSmithKline, L&T|
|Unitech||Kolkata, Noida, Gurugram||Unitech Info Space||TCS, Accenture, Genpact||Nirvana
Courtyards II, Gurugram Signature
Towers III, GurgaonUniworld
Business Park, Gurgugram
|Asahi, Pepsi Co., Perfetti, AT Kearney|
|Cognizant, Tata Consultancy Services,
|Godrej||Pune, Kolkata, Mumbai||Godrej
|L&T, Cisco Systems, KPMG||Godrej
|KPMG, Omniscient Solutions|
|Merck, L & T|
Tech Park, Bangalore
|IBS Software, Capgemini, LG CNS|
Trade Centre, Kochi
Please also have a look at the other Real Estate Developers, such as India Bulls, Eros Group, Lodha Group, Larson and Toubro or Brigade Group.
Real estate agents
Real Estate Agents connect owners or the builder with clients and charge a commission in return. These agents help in finding leasing locations for clients. Following are a few prominent real estate agent firms which have a pan India or multi-city presence in India like JLL, HSN Realty or CBRE:
|JLL||Ahmedabad, Delhi, Mumbai, Bengaluru, Pune, Chennai, Hyderabad, Gurugram, Kolkata, Kochi, Coimbatore||· Rolta Corporate Tower, Gurugram
· NESCO IT Park-Building 4, Mumbai
· The Hub Thergaon, Pune
· Shailendra Techno Park, Bangalore
|HSN Realty||Delhi NCR||· DLF Building, Cyber City, Gurugram
· DLF Infinity Tower, Gurugram
· Birla Tower, Delhi
· World Trade Tower, Delhi
|CBRE||Delhi, Bangalore, Chennai, Hyderabad, Mumbai, Pune, Thiruvananthapuram||· North Gate Phase 1 SEZ, Bangalore
· Power Mech IT Park, Hyderabad,
· Dyna Business Park, Mumbai
First Lease, Colliers International, Cushman and Wakefield, Savills, Leasing India are some of the other noteworthy firms which provide real estate agent services in multiple cities of India.
Apart from these firms, local real estate agents can be found on real estate websites such as 99Acres.
Co working spaces
Co working spaces are a good option for startups in their nascent stage. They are cost effective compared to renting an office space and provide a plethora of dynamic services. Co-working spaces also provide an ecosystem of like-minded organisations to connect with on regular basis. The following are some of the prominent firms providing co-working spaces in major Indian cities like WeWork, CoWrks, 91springboard:
|Firm||Operational Cities||Operational since||Approx. no. of seats||Approx. starting prices – per month per person|
|WeWork||Bengaluru, Gurugram, Mumbai||2010||15.100+||INR 7.000
|CoWrks||Bengaluru, Mumbai, Gurugram, Chennai, Hyderabad||2016||10.000+||INR 10.500
|91springboard||Bangalore, Delhi, Gurugram, Goa, Hyderabad, Noida, Mumbai, Pune||2013||8.130+||INR 6000
Please also have a look at the other co-working providers, such as Awfis, Vatika Co-working Spaces, Innov8, Coworkyard India, iKeva, Skootr and Regus.
All the above given prices are approximate number and based on the prices for Gurugram. These prices are subject to change depending upon the chosen locations and the facilities taken. Negotiations in pricing may also be possible with the service providers.
Platforms such as Coworker may also be used for exploring different coworking options available in various cities of India.
Co-working is a trend which has strongly impacted the work culture of India. Startups, freelancers, Indian corporations and MNCs are gravitating towards co-working spaces. These co-working spaces are not only present in Tier I cities like New Delhi, Mumbai, Pune and Bangalore, but have also penetrated Tier II cities like Guwahati, Chandigarh and Kochi. With the unprecedented growth of the Indian startup ecosystem, it seems that Indian co-working industry will continue to flourish.