Bengaluru has emerged as the top location in Asia to start or expand technology operations. As per a recent report, the city has beaten Singapore and Shenzhen to emerge as number one choice in Asia for technology occupiers.
As per a Colliers’ research report titled “Top Locations in Asia: Technology Sector,” Bengaluru tops the list with the overall score of 67.9 percent, followed by Singapore and Shenzhen at 62.6 percent and 60.9 percent. Hyderabad is ranked seventh on the list with 59.3 percent.
The report summary is based on quantitative and qualitative analysis of socioeconomic, property and human factors of 16 cities in developed and emerging markets across Asia. The top score of Bengaluru implies its top long-run growth, depth of talent pool, ample office stock, lower staff costs and rents, as well as a low cost of living.
Other advantages of Bangalore include the largest stock of Grade A office space of 141 million sq ft in Asia after Tokyo. In fact, regarding growth potential, Oxford Economics has placed Bangalore at the top of its list of growth forecasts for Asian cities over the next five years and ten years.
Dubbed as Silicon Valley of India, Bengaluru has attracted the highest quantum of startup investments at an annual average of $4 billion over the last three years.
Inside the Bengaluru, the Outer Ring Road is identified as one of Asia’s leading technology hubs. However, the report also has identified seven bottlenecks or “pain points” along the route due to which the city scores poorly in measures of quality of office accommodation and quality of infrastructure.
The report also states that Beijing and Hyderabad as attractive alternatives. The report mentions that bottom-up analysis of factors, such as planned strategic development, suggests that the two cities are more attractive than their scores suggest. Also, Hong Kong is expected to rise as a tech center owing to its proximity to South China, recent expansion by big technology groups, and surging investment in fintech.
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