The report by property consultant CBRE said technology companies continue to fuel office demand in the APAC region, despite the absence of any principal city or cluster of the same status as Silicon Valley. Technology sector accounted for 23% of total leasing activity in 2018.
The study has ranked 15 cities of Asia Pacific in three categories based on their performance with regard to business conditions, innovation environment, and cost and availability.
Business conditions and innovation environment were each given a weightage of 40% while cost, a relatively less important consideration for tech firms, was given 20% weightage.
"Leading cities are Beijing, Bangalore, Shanghai, Singapore and Gurugram. These cities score highly in terms of business conditions and innovation environment, as well as providing costs and availability that are supportive for business growth," the report said.
These cities are preferred destinations for a wide range of traditional and new tech companies seeking to establish a base of operations in Asia Pacific.
Hyderabad figures in the list of five competent cities along with Hangzhou, Shenzhen, Tokyo and Seoul. These cities already host tech industry sub-sectors and demonstrate solid performance across most categories.
Five 'supplement cities' are Hong Kong, Hsinchu, Sydney, Taipei and Auckland. These cities rate favourably on certain important aspects, but their most appropriate role is to serve as host for specific functions to complement larger hubs elsewhere in the region.
"India is home to an increasing number of tech unicorns and Asia Pacific is increasingly defined as the region leading in the rapid adoption of disruptive technology.
"However, there is still room for growth in terms of identifying locations where business conditions, innovation and talent come together to form a globally competitive digital hub," said Anshuman Magazine, Chairman and CEO, of CBRE India.
The observations were made in CBRE's latest report titled 'Programming Asia Pacific’s Tech Cities as Global Tech Hubs'.