For investors, office assets in Bangalore offer Asia’s top long-run rent and capital growth potential.
Colliers’ “Top Occupier Locations in Asia: Implications for Investors” report assesses the investment implications of our “Top Locations” research. This work determines the best urban centres for technology and finance occupiers by examining 50–60 criteria relevant to choice of location under three headings, socio-economic, property and human factors, across 16 Asian cities.
Growth potential and availability of talent are vital to technology firms, for which the top three locations are Bangalore, Singapore and Shenzhen. Economic scale and wealth measures are very important to financial groups, for which the top three locations are Hong Kong, Tokyo and Singapore.
For investors, office assets in Bangalore offer Asia’s top long-run rent and capital growth potential. Singapore appeals to firms and staff in both technology and finance, and promises firm medium-term rent growth. Shenzhen benefits from a broad technological base and GBA integration, while new supply gives investors wide choice of assets.
Hong Kong dominates traditional finance and enjoys new growth in fintech. Investors should follow tenants to CBD fringe areas such as Wanchai. Employment inflows and low net supply drive Tokyo’s office market. Core areas will continue to be good investment targets. Tokyo assets also happen to offer Asia’s widest yield gap over bonds.