Bengaluru has been listed among the top tech locations in Asia along with Singapore and Shenzhen in a research report “Top Locations in Asia: Technology Sector” released by Colliers Research. The research is based on the data collected from 16 studies having developed and emerging markets across the largest continent in the world. The study was based on around 50 parameters including property, human, and socio-economic factors.
Apart from these 3 cities, Beijing and Hyderabad are also attractive options whereas Hong Kong is fast emerging to join the list.
Bengaluru Is One Of The Top Choices
According to the research report, Bengaluru, Singapore, and Shenzhen are the best urban locations for technology firms in Asia for expanding or even starting technology operations. Modest growth prospects of high profile cities like Taipei and Tokyo put them down on the list for the technology sector.
The research says that the newly emerging cities have the potential to offer low operating costs plus high potential for growth. However, they score lower on human aspirational metrics and employment criteria. The IT hub of India has attractive sub-markets for media, technology and telecom occupiers which are the key drivers when it comes to demand for office space.
The report says that the large tenants prefer Central Business Districts or CBD fringe locations for submarkets whereas smaller tenants prefer business parks.
Key Features That Support Bengaluru As Topmost Tech Location
The Colliers Research says that the high availability of office space, high long-run economic growth, and large talent pool are the factors that have made the Garden City one of the topmost tech locations in the continent.
The Managing Director of Colliers International India, Joe Verghese said, “Popularly known as the Silicon Valley of India, Bengaluru has been chosen as the No 1 choice in Asia for technology occupiers. Bengaluru’s top ranking is based on its socio-economic strengths, making it among the fastest-growing cities in Asia, with an average predicted annual GDP growth of 9.6 percent till 2022.”
Verghese further added, “It benefits from a wide and experienced talent pool. The city has the largest number of higher education institutions across India relative to its population, with an employability ratio of 24 percent for the IT sector. As the natural hub for technology start-ups, Bengaluru has attracted the highest quantum of start-up investment at an annual average of $4 billion over the last three years. “
Joe Verghese said that Bengaluru has a clear edge owing to its largest stock of Grade A office space in Asia just after Tokyo. Other factors that put the Heritage City ahead of others include low employer costs and being one of the top 10 inexpensive cities to live.
The Managing Director Occupier Services, Colliers International India, Ritesh Sachdev said, “The Outer Ring Road (ORR) is still the preferred submarket in Bengaluru. However, the tech occupiers should consider Whitefield and North Bengaluru where quality supply is available at competitive rents, and infrastructure will steadily improve.”