Bengaluru, best in Asia for starting tech ops: Colliers

Bengaluru, the country's technology hub, has emerged as the best location in Asia for starting or expanding technology operations.

According to property consultant Colliers International report 'Top Locations in Asia: Technology sector', Bengaluru has been ranked in the top position among the 16 cities tracked in Asia.

"Popularly known as the Silicon Valley of India, Bengaluru has been chosen as the No. 1 choice in Asia for technology occupiers. It scores 68% on various parameters," the report said.

The report is based on quantitative and qualitative analysis of socio-economic, property and human factors.

Talking to DH, Colliers International India Managing Director Joe Verghese said Oxford Economics’ Asia Pacific Cities & Regions Outlook of March 2018 states Bengaluru is the fastest growing city in Asia with an average predicted annual GDP growth of 9.6% till 2022.

"The city is famous for its incredible educational institutions, which gives productive talent pool. It naturally provides an edge over other cities with an employability ratio of 24% for the IT sectors," he said.

As per the report, Singapore and Shenzhen ranks below Bengaluru to adorn second and third places respectively for starting or expanding technology operations in Asia.

While Bengaluru scores highly on long-run growth and low costs, the report finds that Singapore scores highly as a talent source and on aspirational metrics and Shenzhen ranks well on property measures.

Bengaluru has the largest stock of Grade A office space in Asia after Tokyo with 141 million sq ft (13.1 million sq metres) spread across multiple micro markets.

Also, the city is known for low employer costs and is among the top 10 inexpensive cities with respect to cost of living. While Hyderabad ranks 7th, other Indian cities like Mumbai and Delhi-NCR find 10th and 11th place in the list of 16 cities.

"Bengaluru offers technology occupiers ample space to house their operations. In recent years the information technology sector has accounted for 60% to 70% of the gross absorption space in India (although this proportion has been slipping due to increased demand from other sectors)," the report said.

Commenting on the report, Minister for Industries and Commerce K J George said it is very encouraging to see that Bengaluru is most preferred by the tech companies.

"The government is committed to further enhance the facilities in the city so that this momentum can be further taken forward," he said.

Commeting on the report, SKY Dealz Inc CEO and Founder Satish B N said real estate affordability and quality products being developed both in residential and commercial are added advantages.