Bengaluru, Delhi and Mumbai CBDs top prime office yields earners in the world: Knight Frank Global Cities - The 2018 Report Bengaluru s Whitefield is the most affordable tech district among 29 global tech hubs in the world. Gurugram s Cyber City (USD 20.40) pips Madrid s Julian Camarillo area (USD 13.65) and Kuala Lumpur s Cyberjaya Office Market (USD 11.55) in office rents. Mumbai ranks 6th on the Skyscraper Index growth in six months to the quarter ending June 2017, beats London (0.0%), Hong Kong (1.1%), Tokyo (0.0%) and Dubai (0.0%) in rental growth Mumbai, September 28, 2017: Knight Frank presents the future of real estate worldwide in the fourth edition of the Global Cities: The 2018 Report. The flagship global report reveals the trends shaping 40 leading international cities across the globe. Key Findings: Overview Three Indian metros Bengaluru, Mumbai and Delhi earned the highest prime office yields among 34 leading international markets. Bengaluru topped the table with 10% yields followed by Delhi (9.20%) and Mumbai (8.50%) PRIME OFFICE YIELDS INDEX Ranking City Prime office yield 1 Hong Kong 2.70% 2 Paris 3.00% 3 Zurich 3.00% 4 Berlin 3.25% 5 Tokyo 3.30% 6 Singapore 3.30% 7 Frankfurt 3.80% 8 Madrid 3.90% 9 Amsterdam 4.00% 10 London (City) 4.25% 11 New York 4.30% 12 Dublin 4.50% Page 1/8
13 San Francisco 4.50% 14 Boston 4.60% 15 Seoul 4.66% 16 Los Angeles 5.00% 17 Seattle 5.00% 18 Sydney 5.06% 19 Washington DC 5.10% 20 Melbourne 5.25% 21 Miami 5.50% 22 Shanghai 5.60% 23 Chicago 5.60% 24 Austin 5.80% 25 Manila 5.90% 26 Beijing 6.00% 27 Dallas 6.00% 28 Brisbane 6.38% 29 Kuala Lumpur 6.50% 30 Bangkok 7.00% 31 Pittsburgh 7.50% 32 Mumbai 8.50% 33 New Delhi 9.20% 34 Bengaluru 10.00% TECH DISTRICTS Bengaluru s Whitefield is the most affordable tech district among 29 global tech hubs in the world. Ranking 25th on the Tech Districts Index, Gurugram s Cyber City (USD 20.40) beats Madrid s Julian Camarillo area (USD 13.65) and Kuala Lumpur s Cyberjaya Office Market (USD 11.55) in office rents. Sr no City Tech District Prime Rent (US$ per sq ft) 1 London Shoreditch 90.75 2 San Francisco Mid-Market 77.00 3 Dublin Docklands 76.30 CBD : Rama 1, Sathorn, Sukhumvit Soi 4 Bangkok 21 74.25 5 Paris 1st, 2nd and 9th Districts (Cité Financière) 74.00
6 Boston Seaport District 72.00 7 Los Angeles Playa Vista 62.00 8 New York Brooklyn 56.05 9 Beijing Zhongguancun 55.05 10 Washington DC NoMa (North of Massachusetts Avenue) 51.25 11 Austin The Domain 44.50 12 Seattle South Lake Union 44.00 13 Dubai Dubai Media City 43.55 14 Singapore One North 41.45 15 Berlin Potzdammer Platz 40.70 16 Toronto King & Spadina 39.90 17 Hong Kong Cyberport, Pokfulam 36.90 18 Miami Coconut Grove 35.00 19 Chicago Fulton Market District 35.00 20 Amsterdam City Centre 34.45 21 Sydney Pyrmont 33.80 22 Melbourne Richmond 32.05 23 Shanghai Zhangjiang Hi-Tech Park 27.50 24 Mexico City Santa Fe 27.30 25 Delhi Gurugram (Cyber City) 20.40 26 Seoul Guro-gu (Guro Digitial Complex) & Geumcheon-gu (Gasan Digital Complex) 14.65 27 Madrid Julian Camarillo area 13.65 28 Kuala Lumpur Cyberjaya Office Market 11.55 29 Bengaluru Whitefield 9.65 SKYCRAPER INDEX Mumbai ranks 6th on the Skyscrapper Index growth in six months to Q2 2017 Prime office rents in the upper floors of high rises in Mumbai see 1.8% growth, among the top six international rent appreciating markets India s financial capital pips iconic global destinations such as London (0.0%), Hong Kong (1.1%), Tokyo (0.0%) and Dubai (0.0%) Established office markets such as Singapore (-0.9%) and Kuala Lumpur (-0.8%) see negative
Sr no City Rent (US$ / sq ft / per annum) % growth in six months to Q2 2017* Growth rank 1 Hong Kong $304 1.1% 9 2 New York (Manhattan) $162 1.8% 7 3 Tokyo $140 0.0% 10 4 San Francisco $117 3.5% 4 5 London (City) $110 0.0% 10 6 Sydney $107 3.4% 5 7 Boston $77 0.0% 10 8 Shanghai $67-3.9% 23 9 Singapore $66-0.9% 21 10 Beijing $66 7.6% 2 11 Chicago $62 1.6% 8 12 Paris (La Défense) $58 0.0% 10 13 Toronto $58 11.9% 1 15 Melbourne $56 4.6% 3 16 Mumbai $56 1.8% 6 14 Frankfurt $54 0.0% 10 17 Los Angeles $45-2.2% 22 18 Dubai $44 0.0% 10 19 Taipei $41 0.0% 10 20 Madrid $39 0.0% 10 22 Manila $33 0.0% 10 21 Seoul $30 0.0% 10 23 Kuala Lumpur $23-0.8% 20 WHAT USD 100 MN COULD BUY? More than half a million sq.ft of prime office space in Bengaluru, the highest in the world Delhi emerged as the most expensive office market in India on the What USD 100 mn could buy? index followed by Mumbai Ranking City Sq.ft 1 Hong Kong 11,698 2 Tokyo 31,282 3 Paris 36,662 4 Zurich 43,754 5 London (City) 43,899
6 Singapore 48,389 7 New York 56,534 8 San Francisco 62,543 9 Dublin 65,717 10 Frankfurt 75,632 11 Sydney 76,280 12 Berlin 85,170 13 Amsterdam 96,762 14 Beijing 99,563 15 Madrid 105,730 16 Shanghai 115,657 17 Los Angeles 131,857 18 Boston 134,977 19 Washington DC 135,602 20 Melbourne 136,905 21 Seoul 140,608 22 Miami 156,073 23 New Delhi 156,304 24 Brisbane 157,225 25 Seattle 157,381 26 Mumbai 163,032 27 Austin 172,158 28 Chicago 204,604 29 Bangkok 229,244 30 Dallas 247,219 31 Manila 290,201 32 Pittsburgh 327,225 33 Kuala Lumpur 445,739 34 Bengaluru 512,385
EMPLOYMENT AND PROPERTY COST INDEX Bengaluru emerged as the most valued destination on the Employment and Property Cost Index with total cost (salary + property) of USD 1,264,000 Table: Cost to a firm (salary and property costs) of employing 100 people in a City (US$ per annum) Rank City Total cost (salary and property) 1 Zurich $7,947,260 2 New York $6,938,000 3 San Francisco $6,696,700 4 Hong Kong $5,964,990 5 Boston $5,936,820 6 London (West End) $5,605,660 7 Sydney $5,022,190 8 Tokyo $4,897,270 9 Chicago $4,874,730 10 London (City) $4,850,620 11 Singapore $4,616,950 12 Paris $4,115,120 13 Dublin $4,051,670 14 Stockholm $3,998,790 15 Frankfurt $3,814,610 16 Amsterdam $3,522,130 17 Warsaw $1,631,670 18 Cape Town $1,626,900 19 Bengaluru $1,264,000 HOW RISING INCOMES SPENDS WOULD INFLUENCE THE SHAPE AND CONTENT OF URBAN ENVIROMENTS Bengaluru and Mumbai top the chart among 10 future cities in terms of eating out spends Forecast in (%) in spending on eating out between 2017 and 2027 Bengaluru: 176.9% Singapore: 35.2% Mumbai: 136.7% Hong Kong: 33% Shanghai: 97% Austin: 26.4% Beijing: 96% Dubai: 22.1% Nairobi: 82.8% Sydney: 19.6% Source: Oxford Economics Knight Frank Global Cities: The 2018 Report
Bengaluru and Mumbai feature among the top 5 future cities in terms of households with significant incomes Forecast growth in households with an income of USD 35,000 USD70,000 between 2017 and 2027 Shanghai: 153% Dubai: 48% Bengaluru: 144% Austin: 18% Beijing: 133% Singapore: 16% Nairobi: 110% Hong Kong: 15% Mumbai: 67% Sydney: 7% Source: Oxford Economics Knight Frank Global Cities: The 2018 Report Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, The Global Cities: The 2018 Report offers a bird s-eye view into the future of the most state-of-the-art world cities. Our spaces are being redefined. And, one of the most disruptive facets of the change in spaces where we work, live and the overall urban ecosystem would be acquisition of talent. Organisations would have to thoughtfully handpick global cities, zoom into smart office locations within them and tastefully shape these spaces in sync with the fascinations of the crème-de-la-crème workforce making the world work today. And, it is needless to state that the evolution would be driven by technology and smart intelligence. According to Dr. Samantak Das, Chief Economist & National Director Research, Knight Frank India, Desires of the talent pool and rising disposable incomes are set to shape our urban environments in the near future. Global cities that are aspirational and successful in encapsulating an inherent wow factor are set to see the most dramatic transformation. We have already seen glimpses of the transformation with a shift in the expectations of mainstream occupiers. Today we see that the office space expectations of mainstream occupiers resembling those of niche sections such as the Start-up fraternity or the Googles of the world. The global trend holds true for select Indian cities such as Bengaluru and Mumbai. Viral Desai, National Director, Occupier Solutions Group, Knight Frank India, added, India s office market witnessed a stellar run in 2016 as compared to the recent past. It is also a fairly accepted fact that India is home to some of the most affordable Central Business Districts in the world. The findings of the Global Cities: The 2018 Report reinstates the fact. Bengaluru s Whitefield is a case in point. Despite the influence of global headwinds on mainstream occupiers, emerging trends such as Coworking space providers have continued to whip up demand in the supply-deprived market.
About Knight Frank Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 413 offices across 60 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com. In India, Knight Frank is headquartered in Mumbai and has more than 1,000 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land & capitals), facilities management and project management. For more information, visit www.knightfrank.co.in. For further information please contact: Aanchal Shetty (Knight Frank) +91 99305 42661 Aanchal.Shetty@in.knightfrank.com Abhishek Sood (Blue Lotus PR) +91 9920250683 abhishek.sood@bluelotuspr.com