The Tri-Bowl Building in the smart city of Songdo in South Korea. PKphotograph/Shutterstock
Some cities just require a little more investment than others.
By Property Report
London has overtaken San Francisco as the world’s priciest office market for tech companies, according to the recent Global Cities Report by Knight Frank. Office space in Shoreditch, the British capital’s hip inner city district, now demand a rent of USD90.75 per square foot (USD976.83 per square metre) on average from occupiers, compared with USD77 per sq ft in San Francisco’s Mid-Market neighbourhood, home to Twitter and Zendesk.
“Creating great ‘user experience’ is paramount for those looking to attract and retain the best talent,” James Nicholson, a partner at Knight Frank, said in a statement to Business Insider.
“This direct association between workplace and talent has forced businesses to prioritise working environment over and above a general desire to keeping costs low.”
Dropping anchor in Asian office markets has proven to be nearly as expensive. Here are the priciest tech districts in the region:
Price: USD9.65 per square foot
Bengaluru’s Whitefield area placed 29th and last on the overall list, making it the most affordable tech district in the region. “The IT sector in Bengaluru has transformed the city’s character, turning the pensioner’s paradise into a bustling cosmopolitan hub,” noted Vivek Rathi, vice-president of research at Knight Frank India.
8. Kuala Lumpur
Price: USD11.55 per sq ft
Coming in at number 28 is the Cyberjaya office market of Kuala Lumpur. Transport infrastructure expansions have decentralised office hubs in the Malaysian metropolis, with multinationals and local companies drawn to such locations as Kuala Lumpur Sentral, Damansara Heights, and Bangsar South in recent years.
Price: USD14.65 per sq ft
The Guro-gu district, apparently the 26th most exensive tech office market in the world, is the site of the Guro Digital Industrial Complex, an important setting in South Korea’s journey to becoming the economic juggernaut it is today. Seoul is now one of the global leaders in smart city technologies, from night bus routes that are determined according to the location of late-night calls to underground disposal systems that recycle garbage.
Price: USD20.40 per sq ft
Delhi’s Gurgaon (Cyber City) area is home to an ever-expanding array of e-commerce giants, including Amazon India’s first fashion studio, BLINK. Delhi has an internet user base of 12.1 million.
Price: USD27.50 per sq ft
The expensive office spaces in Zhangjiang Hi-Tech Park, deemed the 23rd most expensive tech district in the world, are indicative of Shanghai’s move up the value chain. E-commerce is increasingly driving the city’s economy, with property developers and financial institutions such as Vanke, Ping’an, and Greenland exploring more and more investments in the warehouse sector.
4. Hong Kong
Price: USD36.90 per sq ft
It makes sense that the world’s hottest housing market should also be one of the world’s most expensive places for tech. Prices in the Cyberport area of Pokfulam is now more expensive than Melbourne’s Richmond (USD32.05 per sq ft) and Sydney’s Pyrmont (USD33.80).
Price: USD41.45 per sq ft
Singapore’s One North is the 14th most expensive tech district in the world. The 200-hectare area has been master-planned to become home to R&D centres, ICT companies, and other high-value organisations.
Price: USD55 per sq ft
Beijing’s Zhongguancun district has become the world’s ninth most expensive for tech. Approximately 35.5 million sq ft of grade A office space will enter the Beijing market from this year through 2021.
Price: USD74.25 per sq ft
Thailand’s City of Angels has proven to be the region’s priciest for tech. Its tech-savvy CBD is more expensive than not only Los Angeles (at seventh place), but also New York City (eighth), Boston (sixth), and Paris (fifth). All the action is taking place along the busy thouroughfares of Rama 1, Sathorn, and Sukhumvit Soi 21.
Online firms have expanded aggressively, acquiring offices and warehouses to operate from, said Risnee Sarikaputra, head of research and consultancy at Knight Frank Thailand. “Technological advances will allow people to bypass existing infrastructure and developmental constraints, and the impact on real estate is likely to be positive as well as transformational.”
This article originally appeared on Property Report.