Bangalore ($1/sqft, 14.2% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Bangalore on rent and tax and Tokyo on talent depth.
Bangalore ($1/sqft, 14.2% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Bangalore on rent and tax and Tokyo on talent depth.
| Metric | Bangalore | Tokyo |
|---|---|---|
| Region | APAC | APAC |
| Country | India | Japan |
| Class A rent (USD/sqft/yr) | $1 | $113 |
| Class A rent (local) | 110 INR | 50000 JPY |
| Vacancy | 14.2% | 4.6% |
| Trend | rising | rising |
| Prime yield | 8.5% | 3% |
| Premium flex / seat / month (USD) | $280 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 25.17% | 30.6% |
| Metric | Bangalore | Tokyo |
|---|---|---|
| Typical term | 9 yrs | 5 yrs |
| Typical rent-free | 6 mos | 4 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. | Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply. |
| 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. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Bangalore | Tokyo |
|---|---|---|
| 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. | The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium. |
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.
Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Bangalore is the cheaper Class A market on a USD basis.
Tokyo has the deeper talent index (84/100 vs 82/100).
Bangalore has the lower headline corporate tax (25.17% vs 30.6%). Local incentives can change the effective rate materially.
Bangalore typical term is 9 years with 6 months free; Tokyo runs 5 years with 4 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. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Score Bangalore, Tokyo 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.