With the exponential growth of smart phone adoption, a flourishing start-up scene and booming ecommerce, the tech sector across many cities in Asia Pacific is expanding fast.
Tech companies are becoming a key driver in office markets from South Korea to India as new start-ups flock to the region and existing companies expand.
“Tech firms are now among the largest occupier categories in many markets and over the near-term we expect further growth in tech sector demand,” says Christopher Clausen, Associate Director of Research, JLL Asia Pacific. “And they are increasingly looking for high-quality office space to attract talent.”
Cities in Asia Pacific are well aware of the opportunities if they can meet the rising levels of demand and are taking steps to woo tech occupiers through supportive government policies and the creation of large scale tech hubs.
In Hong Kong, for example, there are tech-focused government policies along with bodies such as the Innovation and Technology Bureau that aim to develop the Special Administrative Region into a knowledge-based economy. Additionally, projects like Lok Ma Chau Loop, a high-tech science park which is under development on the border between Hong Kong and Shenzhen could provide its fledgling start-up scene with an extra boost.
Meanwhile, other cities like New Delhi are providing entrepreneurs with easy access to incubator and accelerator programmes while the decentralization of the office market in Beijing in emerging areas such as Tongzhou gather pace are giving start-ups a chance to occupy high-quality spaces.
Yet not all cities are benefiting from the tech boom in the same way. “Tech demand for office space will likely be uneven across the region. Some Asia Pacific markets are already facing a talent shortage while others lag the region in terms of language and technical skills,” says Clausen. “And even in tech savvy markets not all landlords will benefit as tech occupiers tend to cluster in specific areas and have specific building requirements.”
Watch the video above to find out which cities in Asia Pacific are coming out on top in the tech sector boom.