Bangalore ($1/sqft, 14.2% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Bangalore on talent depth and Shanghai on rent and tax.
Bangalore ($1/sqft, 14.2% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Bangalore on talent depth and Shanghai on rent and tax.
| Metric | Bangalore | Shanghai |
|---|---|---|
| Region | APAC | APAC |
| Country | India | China |
| Class A rent (USD/sqft/yr) | $1 | $122 |
| Class A rent (local) | 110 INR | 880 CNY |
| Vacancy | 14.2% | 19.8% |
| Trend | rising | softening |
| Prime yield | 8.5% | 4.4% |
| Premium flex / seat / month (USD) | $280 | $740 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25.17% | 25% |
| Metric | Bangalore | Shanghai |
|---|---|---|
| Typical term | 9 yrs | 3 yrs |
| Typical rent-free | 6 mos | 8 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. | Standard 3-year lease with renewal option. Rent gross of management fees but exclusive of utilities. Bank guarantee or rent deposit of 3-6 months standard. Reinstatement at lease-end is contractual. |
| 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. | Headline corporate tax 25% (15% for High and New Technology Enterprises). Free Trade Zone advantages exist. |
| Metric | Bangalore | Shanghai |
|---|---|---|
| Talent index (0–100) | 82 | 76 |
| 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. | Mainland China's deepest financial-services and tech talent pool. Average all-in compensation indexes 76. |
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.
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Bangalore is the cheaper Class A market on a USD basis.
Bangalore has the deeper talent index (82/100 vs 76/100).
Shanghai has the lower headline corporate tax (25% vs 25.17%). Local incentives can change the effective rate materially.
Bangalore typical term is 9 years with 6 months free; Shanghai runs 3 years with 8 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. Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Score Bangalore, Shanghai 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.