New reports claim that the fast development in technology in "Silicon Valleys" cities such as Shanghai, Vietnam and Bangalore has boosted real estate growth in Asia.
A report published by JLL City Momentum Index 2016 says that urbanization, technological advancement and globalization have helped in building "innovation-oriented economies." Globally, London has topped the list for two consecutive years. It is followed by Silicon Valley in San Jose, California.
In the Asia-Pacific, Bangalore leads the listing and ranks fourth on the international level. The capital city of Karnataka is home to 40 percent of India's leading tech offices. It is also the main IT exporter in India and has the reputation for innovation. Bangalore, the "Silicon Valley of Asia," has a changing urban infrastructure and real estate projects as it fulfills its role as an innovator in the IT industry. Hyderabad is another promising city in India that is ranked eighth in the Asia-Pacific and included in the top 20 globally, Property Report claims.
Bangalore and Hyderabad are the two key cities in India driving the real estate market in the nation. At present, these cities are engaged in various projects including the first phase of Hyperabad's Metro Rail Project and the Chennai-Bangalore and Mumbai-Bangalore Industrial Corridors.
Meanwhile, Vietnam's Hanoi and Ho Chi Minh City are identified as Asia's growth hotspots driven out by the cities' raw GDP growth, economic success and increased foreign investments. Vietnam's development is fuelled by the $40-million Samsung research and development project, and just like India's cities, the IT sector is aiding the growth in the real estate market.
Apart from the cities in Vietnam and India, Shanghai, Sydney, Beijing, Shenzen, Tokyo, Nanjing, Melbourne and Seoul are also included in the list of City Momentum Index 2016. The research studied 120 cities all over the world based on non-real estate and statistical data gathered from various sectors.