Bengaluru is the world’s most affordable technology hub, according to a study conducted by a realty consultancy firm.



Among the top 29 global technology hubs covered by the study, Bengaluru emerged the cheapest in office rentals. Gurugram, another Indian city, comes second.



Whitefield in east Bengaluru is the most affordable technology district, with a rent of $9.65 (Rs 632) per sq feet, according to the Global Cities 2018 Report produced by Knight Frank.



Gurugram, part of the National Capital Region (NCR), is the only other Indian tech hub featured on the list. The rent there is $20.40 (Rs 1,335) per sq feet.



Globally, London is the costliest in office rental values at $90.75 (Rs 5,940) per sq feet.



Bengaluru is also the most valued destination on the employment and property cost index.



The cost to a firm (salary and property) of employing 100 people in the city comes to $1.3 million (Rs 8.27 crore approximately) annually, the lowest in the world.



The Swiss city of Zurich, a global centre for banking and finance, is the costliest on this front. The cost to a firm employing 100 people in Zurich comes to $7.9 million (about Rs 52.02 crore).



Bengaluru is the only Indian city on the list of 19 most valued destinations on the index.



“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,” Viral Desai, national director, occupier solutions group, Knight Frank India, said.



Despite the influence of global headwinds on mainstream occupiers, co-working space providers continue to fuel demand in the supply-deprived market, he explained.



The affordability in Bengaluru can be ascertained from the fact that $100 million (Rs 654.59 crore) can buy up to 5,12,385 sq feet of prime office space, the highest in the world.



In Hong Kong, which has exorbitant property rates, a firm can buy just 11,698 sq feet for the amount.



The amount can buy 1,63,032 sq feet in Delhi and 1,56,304 sq feet in Mumbai.



High rental yield



Bengaluru also generates the highest rental yield, the report said.



The city generated an annual yield of 10% for 2016-17, according to the report.



The list is dotted with Indian cities, as Delhi generated the second highest yield of 9.2% and Mumbai the third highest yield of 8.5%. The lowest yield was generated by Hong Kong (2.7%).



Experts attribute the high yield to lower property values in Bengaluru.



“Because of low property prices, the rental returns are very high,” Samantak Das, chief economist and national director (research), Knight Frank India, told DH.