Bangalore ($1/sqft, 14.2% vacancy) and Melbourne ($468/sqft, 18.4% vacancy) compete on different axes: Bangalore on rent and tax and Melbourne on talent depth.
Bangalore ($1/sqft, 14.2% vacancy) and Melbourne ($468/sqft, 18.4% vacancy) compete on different axes: Bangalore on rent and tax and Melbourne on talent depth.
| Metric | Bangalore | Melbourne |
|---|---|---|
| Region | APAC | APAC |
| Country | India | Australia |
| Class A rent (USD/sqft/yr) | $1 | $468 |
| Class A rent (local) | 110 INR | 720 AUD |
| Vacancy | 14.2% | 18.4% |
| Trend | rising | softening |
| Prime yield | 8.5% | 5.4% |
| Premium flex / seat / month (USD) | $280 | $720 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25.17% | 30% |
| Metric | Bangalore | Melbourne |
|---|---|---|
| Typical term | 9 yrs | 7 yrs |
| Typical rent-free | 6 mos | 14 mos |
| Lease norms | Net leases (tenant pays opex, taxes separately). 9-year terms with 3-year lock-ins standard. Free rent of 4-9 months and TI of INR 1,500-3,000/sqft typical on a 9-year Class A deal. | Net leases. 7-10 year terms standard. Incentives of 30-45% (combination of free rent, fitout, and rent abatement) typical on a 10-year Class A deal. |
| Tax note | 22% base corporate income tax plus surcharges and cess for an effective rate of 25.17%. New manufacturing companies eligible for 15% concessional rate. SEZ benefits available in selected GCC parks. | 30% Australian corporate tax (25% for base rate entities). Victorian state payroll tax of 4.85-6.85%. R&D tax incentive available federally. |
| Metric | Bangalore | Melbourne |
|---|---|---|
| Talent index (0–100) | 82 | 84 |
| Talent note | Deepest tech and engineering talent pool in India — anchored by IISc, IIM Bangalore, IIIT-B, and a deep network of engineering colleges. English-fluent professional base supports global delivery operations. | Deep professional services, banking, education, and creative talent. Strong feed from University of Melbourne, Monash, and RMIT. English-fluent professional base; multicultural workforce. |
Bangalore: BMRCL Namma Metro (Purple, Green, Yellow Lines), BMTC bus. Whitefield is now Metro-served (2023). Bengaluru Suburban Rail under construction. Heavy congestion on Outer Ring Road remains a tenant concern.
Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD.
Bangalore is the cheaper Class A market on a USD basis.
Melbourne has the deeper talent index (84/100 vs 82/100).
Bangalore has the lower headline corporate tax (25.17% vs 30%). Local incentives can change the effective rate materially.
Bangalore typical term is 9 years with 6 months free; Melbourne runs 7 years with 14 months free.
Bangalore: BMRCL Namma Metro (Purple, Green, Yellow Lines), BMTC bus. Whitefield is now Metro-served (2023). Bengaluru Suburban Rail under construction. Heavy congestion on Outer Ring Road remains a tenant concern. Melbourne: Metro Trains (suburban rail), Yarra Trams (the world's largest tram network), and bus. Melbourne Metro Tunnel opens 2025 — adds five new stations under the CBD.
Score Bangalore, Melbourne and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.