Hyderabad Now Claims Second Most Affordable Office Market of the World

                        Another feather has recently been added to the city of Hyderabad, as it now claims the second most affordable office market in the whole world according to a latest survey. As per the survey Hyderabad is just below Surabaya, which is situated in Indonesia. Other major cities of India Chennai and Pune have also made impact on the list by acquiring a deserving place in the top ten slots. Eventually Chennai and Pune are at fifth and sixth positions.

                      This survey has proved that Indian markets are very much affordable, so any franchisee, who wants to make profits, they should choose these markets over others. It will reinforce the reputation of India among the cheapest destinations for various global firms to set up operations as soon as possible.

                                                The survey was conducted by the reputed consultancy firm DTZ. In 2012 it has measured occupancy costs per workstation of a certain company in 126 business districts across 49 countries in the whole world. "Tier II cities in China and India continue to dominate the list of top-10 most affordable markets globally," said the survey.

                                                Mr. Rohit Kumar, who is eventually the head of research at DTZ India said, "2012 has seen office space absorption rates across Indian cities drop by a fifth. We expect the office space absorption to be stable in the current year, driven by signs of overall improvement in global and domestic economies. Rentals are also expected to appreciate across the country."

                                               According to the survey, it costs companies around $23,500 (Rs 12.63 lakh) per workstation to set up a proper operation in London West End, where in the top six Indian cities it costs between $2,620 (about Rs 1.41 lakh) and $9,810 (Rs 5.27 lakh) per year per employee, which is very much low compared to the London West End.

                                             Cities from the countries like Mexico and China are also featured in the top ten lists of the most affordable markets. Cities like China's Chongqing and Nanjing and Mexico’s Cancun feature in the list because of the affordability factors on the global scenario.   

                                                     The markets of North Asia along with India have seen a 5-10% rise in occupancy costs as per the latest report. As a result of that to consider a secondary spot becomes an essential part for the occupiers of the many major markets. It has to be mentioned here that the prime slot is limited to reduce overall cost.

                                                      For the December 2012 quarter, the total office space for commercial purpose was 6.8 million sq ft, which is a decrease of 19% compared with the same quarter of the previous year. The trend is set, companies are unlikely to spend too much money on the office set up process, as the franchisees are keen to cut the cost as much as possible and add the money to the overall profits.

                                                  "Companies continue to consolidate and relocate to less premium locations. Many firms are now looking to cut real estate costs, which comprises 22-27 per cent of the total operational expenditure, the second biggest component after human resource," said Mr. Sridhar Raghavendra, founder of FM Zone India, which is a real estate and facility management firm.