Bangalore has been in the list of top 20 technology-rich cities in the world, according to a survey conducted by global property consultant Jones Lang LaSalle (JLL).
“Bangalore has helped India debut on the ‘City Momentum Index’ Top 20 list ?- an annual survey carried out by JLL globally. Reinforcing the city’s status of being one of India’s premier technology centres, Bangalore figures at No. 12 in the Top 20 technology-rich cities globally,” JLL India Chairman and Country Head Anuj Puri said in a statement.
London, San Jose and Beijing are top three cities on the list.
Good economic growth, investments in infrastructure, presence of startups and significant supply of prime office space are some of the factors that contributed in Bangalore’s strong performance in the survey.
Puri said the economic as well as real estate momentum in Bangalore has gained pace as tech-industry majors line up to enter the market or expand in the city.
JLL said that its survey this year included new variables that reflect the importance of innovation to a city’s competitiveness and dynamism.
“Bangalore performs strongly on these measures, with its capacity for innovation leading to the largest number of international patent applications in India. An increase in the number of high-tech startups registered in the city over the past year has also helped boost Bangalore?s score, reflecting its strengths in innovation and depth of venture capital funding,” Puri said.
Infrastructure investments such as Bangalore metro and a bus rapid transport system on the outer ring road, together with a rise in FDI projects, have contributed to strong economic growth, which is expected to reach 8 per cent this year and make Bangalore among the fastest-growing major cities in the world, JLL said.
The consultant said that the Bangalore’s strong performance has also been boosted by some of world’s highest levels of prime office space construction, absorption and rental increases.
“Interestingly, Bangalore pipped other Asia Pacific cities in demand for office spaces. Robust demand for commercial space from the IT sector and associated IT-enabled services is helping boost absorption levels — highest in the Asia Pacific region,” JLL said.
Construction is increasing to meet the demand generated by Bangalore’s rapidly expanding economy. An increase of around 5-10 per cent in prime office rents will be seen in 2015. The city would add 12 million sq ft of office space in 2015-16.
While outside the Top 20, Delhi and Mumbai are beginning to see an increase in momentum as economic growth picks up and demand for prime office space strengthens.