Beijing, Shanghai, Bengaluru, Shenzhen and Singapore at the moment rank as the leading 5 technologies centres in APAC as they provide a compelling balance of infrastructure and talent for occupiers, and are properly positioned to provide future development and investment possibilities for owners. Other cities are building strengths in distinct locations of technologies, e.g., Seoul and Hong Kong in fintech, though new centres such as Hyderabad and Sydney are emerging, according to a investigation report by Colliers, a qualified services and investment management firm.
The report, titled ‘Growth engines of innovation: How Asia Pacific’s technologies hubs are reshaping regional true estate’, is an in-depth evaluation of how the development of the APAC technologies sector is transforming the region’s home markets. The report supplies a new ranking of the most desirable technologies submarkets inside key APAC cities, which should really serve as a navigation tool for technologies groups, as they strategy expansion.
Among established technologies submarkets in the key APAC cities, the report highlights Shangdi in Beijing. Among upcoming submarkets, it highlights Yangpu in Shanghai, Whitefield and North Bengaluru in Bengaluru, Hitec City (Suburban Business District) in Hyderabad as properly as Sydney’s CBD South.
Commenting on the report, Arpit Mehrotra, Managing Director, Office Services (South India), said, “While Bengaluru has been ranked in the top five technology centers in APAC, we also witness Hyderabad in the Top ten list. Offering a compelling balance of infrastructure and talent for occupiers and well-positioned to deliver future growth and investment opportunities for owners, ORR in Bengaluru is the epicenter of commercial leasing. In addition, while smaller than Bengaluru, Hyderabad is also attracting talent and multinational companies to the city. Rents are 15% to 20% cheaper than in Bengaluru. Overall, we foresee the South India markets leading the pack in terms of office leasing demand for the technology sector.”
Technology firms each the quickest-developing occupiers of space and a new class of owner-occupier
Today, technologies is the most vital business enterprise sector globally, producing up 65% of the world’s leading 20 public providers by industry capitalisation. Technology occupiers are anticipated to account for 20% to 25% of demand for leased workplace space in the APAC area more than the next 5 years. Asia’s technologies giants, in distinct, are expanding promptly, and have grow to be a key driver of leasing demand. Many Asian technologies providers, specifically Chinese technologies firms, have also grow to be extremely active in investment and development of true estate. In 2020 alone, technologies providers acquired practically US$10 billion in APAC true estate assets.
Siddhart Goel, Senior Director & Head of Research, (India), mentioned, “Demand from technology occupiers has been the mainstay of Indian commercial real estate. After reaching highs of 65-70% share in annual leasing volumes in the 1990s and 2000s, though the share declined to around 45-50% share in the last decade, technology occupiers are expected to increase their share in the post pandemic period. Also, Indian office real estate is expected to maintain its competitive advantage over its APAC peers as over 45% of the submarkets in top established and upcoming categories are from the cities of Bengaluru, Chennai, Delhi NCR, Hyderabad and Pune. This is further supported by our research that shows that about 70% of the tech occupiers are MNCs compared to an average of 30-40% in many other APAC cities.”
Delhi NCR also ranks in leading ten cities by home elements
In addition to rent and rental development, a crucial determinant for technologies occupiers to develop is the availability of top quality space at competitive rentals. With ample space in new or outlying districts, Bengaluru, Hyderabad, Shenzhen, Delhi NCR and Manila, are the leading markets by home elements.
Bhupindra Singh, Managing Director, Regional Tenant Representation (India), mentioned, “Delhi NCR’s micromarkets of Noida Expressway and Golf Course Extension Road in Gurugram have been featured amongst the top ten emerging submarkets in the APAC region for Tech occupiers, which is expected as technology companies are coming out of an extended work from home scenario and raring to go and perform in an office setup. We foresee buoyancy in the Delhi NCR market, and once the restrictions are fully lifted, the market will witness an upswing. Colliers forecasts an increase in uptake from the SME segment, moving towards economical micro-markets in the NCR, like NOIDA and Golf Course Extension.”