Costs for entrepreneurs wanting to launch a start-up are highest in London. That’s according to a new report by Knight Frank. For Bangkok, tech start-ups face the lowest real estate costs globally.
The UK real estate agent looked at the cost of leasing and fitting out 600 square feet (183 square metres) of office space in the tech and creative districts of the world’s leading cities.
The size represents enough work space for a budding business of four employees, with a small conference room.
- Of the 27 cities analysed including nine from Asia-Pacific, London tops the rankings as the city where tech start-ups face the highest real estate costs. This is followed by New York and San Francisco.
- Hong Kong, Beijing and Singapore are the only Asian cities in the top 10 chart. For a tech start-up setting up in these Asian cities, the rental costs would be over 40% less than London.
In London, this would cost US$66,706 per year – the highest of any creative district in the world.
The second most expensive place to launch a start-up is Brooklyn, New York, at $62,736, followed by San Francisco at $61,680.
In Bangkok the rental costs is estimated at $18132 per year in the Thonglor / Ekamai district, and as low as $6120 for co-working cost based on four desks in collaborative open plan environment.
The top six cities offering substantial cost savings in a co-working environment after Brisbane are all from Asia-Pacific: Beijing (74.1%), Bengaluru (72.0%), Kuala Lumpur (70%), Bangkok (66.2%), and Sydney (64.5%).
In fact, four of the top 10 most expensive cities are in the United States, with Boston in fifth place with $50,700 per 600sqft and Los Angeles in seventh with $47,124.
In Europe, Paris and Dublin join London in the top 10 priciest locations, with Paris in fourth place at $57,426 and Dublin in sixth at $47,345.
The most expensive cities in Asia were Hong Kong in eighth place, where leasing 600sqft of space would cost $40,488; Beijing, in ninth, would involve an outlay of $39,090 and Singapore, in tenth, $39,088.
- For tech start-ups opting for the co-working spaces based on a four-desk collaborative open plan environment, Brisbane offers the best cost savings, offering an astounding 79.4% discounts versus traditional office space.
- The top six cities offering substantial cost savings in a co-working environment after Brisbane are all from Asia-Pacific: Beijing (74.1%), Bengaluru (72.0%), Kuala Lumpur (70%), Bangkok (66.2%), and Sydney (64.5%).
- For Bangkok, tech start-ups face the lowest real estate costs globally, whether looking at traditional space or co-working space.
Start-ups are a key part of the innovation economy in areas that are struggling with slow growth. While about two thirds of small businesses don’t make it past 10 years, according to US figures, those that take off can change the way we live, from Uber to AirBnB.
Source: Thinking of launching a start-up? It’s cheapest in these places | World Economic Forum