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 told PTI.
Good economic growth, investments in infrastructure, presence of start-ups and a significant supply of prime office space are some of the factors that contributed to Bangalore’s strong performance in the survey. JLL said that its survey this year included new variables that reflect the importance of innovation to cities’ 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 start-ups 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 the Bangalore metro and a bus rapid transport system on the outer ring road, together with a rise in FDI (foreign direct investment) projects, have contributed to strong economic growth, which is expected to reach 8 per cent this year and place Bangalore among the fastest growing major cities in the world, JLL said.The property consultant said that 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,” the agency said.
An increase of around 5-10 per cent in prime office rents is expected in 2015. The city would add 12 million square feet of office space in 2015-16. 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, it noted.
The article was first published in CXOtoday.com