Urbanisation and technology are playing an important role in driving real estate growth in Asia’s major cities.
According to the latest JLL report,City Momentum Index 2016, Bangalore, Hyderabad, Shenzhen, Shanghai and Beijing are fast rising up the innovation rankings of top cities.
In the Asia Pacific region, Bangalore ranks number one – and fourth overall. Considered the ‘Silicon Valley of the East’, the city is home to some 40 percent of India’s techology giants and its innovation powered by a mix of research and higher education institutions.
Hyderabad, another city in India, also joined this year’s top 20 – and ranked 8th in Asia.
Other growth hotspots include Vietnam’s Hanoi and Ho Chi Minh City.
Both cities sit outside Asia’s top 10.
The report studies about 120 cities, covering several sectors – including economy, connectivity, construction, property prices, real estate investment, technology, business start-ups, corporate presence, research and development and education.
Three important drivers stand-out.
Accelerating demographics in cities such as Bangalore and Hyderabad – among the fastest growing in the world – gives innovation oriented cities access to larger pools of talent.
Both cities, for example, already draw on more workers in the IT industry.
Huge investments in connectivity is another factor.
Infrastructure and environment helps attract talent, creativity and money.
Shenzhen, for example, is constructing five new metro lines and high-speed rail connecting the city with Guangzhou and Hong Kong.
Hyderabad is investing nearly $4 billion in its Metro rail and Bangalore is connecting a Chennai-Bangalore rail and creating a Mumbai-Bangalore Industrial Corridor.
Another important driver is the expansion of research and development centres.
In 2015, Samsung announced plans to invest $400 million to expand its R&D centre in Hanoi.