Step aside San Francisco: the best cities in the world for tech
In addition to rent, Savills looked at over 100 metrics, ranging from the number of days needed to start a business through to the cost of a flat white coffee. Image: REUTERS/Chris Aluka Berry
When it comes to tech, San Francisco on the west coast of the US has a well established reputation as being the world's number one city.
But San Francisco's crazy living costs led real estate firm Savills to choose another US city as its number one tech hub in its Tech Cities 2017 report, which ranks 22 cities across the world "at the forefront of the global tech industry."
In addition to rent, Savills looked at over 100 metrics, ranging from the number of days needed to start a business through to the cost of a flat white coffee. Researchers also looked at access to venture capital and transportation times for the average tech worker.
Savills said that all of the cities are "at the top of global shopping lists for tech companies looking for space in which to locate."
Summary: "One of Africa's most popular tourist destinations is now also one of its hottest tech environments, aided by initiatives such as French Tech's recently-launched incubator in Century City — with another one scheduled to appear in Johannesburg. Known as the 'digital gateway to Africa', the Western Cape is home to four top universities, and some 59% of South Africa's startups are born here."
City population: 3.7 million
City GDP per capita: $8,735
Established tech firm office rent per week per sq ft: $13
Prime residential rent per week: $840
Cost of a Flat White: $1.78
Startups per 1,000 people: 0.1
Average commute by employees working in key tech districts: 35 minutes
Cost of a single journey on local transport: $0.77
Annual passengers across the city's airports: 9.7 million
Summary: "Buenos Aires may be known for its party atmosphere, but a tech start-up environment is also taking hold – spurred on by the city's many highly-rated universities and an increased appetite for venture capital funding. Despite Argentina's troubled economy and political situation, Buenos Aires has emerged as a key player in renewable energy and aerospace technology."
City population: 2.9 million
City GDP per capita: $15,285
Established tech firm office rent per week per sq ft: $28
Prime residential rent per week: $374
Cost of a Flat White: $2.50
Startups per 1,000 people: 0.2
Average commute by employees working in key tech districts: 38 minutes
Cost of a single journey on local transport: $0.43
Annual passengers across the city's airports: 8.6 million
Summary: "Bangalore has enjoyed a status as India's leading tech city since the 1970s, when a 330-acre industrial park was created to house the city's electronics factories. The tradition continues today: around two-fifths of India's IT and software exports come from Bengalaru, and the city's low labour costs and wealth of technical talent make it particularly attractive for outside investment."
City population: 9.8 million
City GDP per capita: $4,368
Established tech firm office rent per week per sq ft: $12
Prime residential rent per week: $911
Cost of a flat white: $1.35
Startups per 1,000 people: 0.4
Average commute by employees working in key tech districts: 47 minutes
Cost of a single journey on local transport: $0.31
Annual passengers across the city's airports: 18.1 million
"Santiago's 'Chilecon Valley' contains a relatively new, but fast-developing tech ecosystem supported by grants from the Chilean government. Its innovative programmes include The S Factory, an accelerator designed for female entrepreneurs. As Chile seeks to reduce its reliance on copper mining, Santiago is helping the country reposition itself as South America's new tech hub."
City population: 6.2 million
City GDP per capita: $15,880
Established tech firm office rent per week per sq ft: $26
Prime residential rent per week: $584
Cost of a Flat White: $2.55
Startups per 1,000 people: 0.1
Average commute by employees working in key tech districts: 31 minutes
Cost of a single journey on local trans pot: $1.07
Annual passengers across the city's airports: 17.3 million
Summary: "Perhaps the world's first truly high-tech city, Tokyo's dominance has waxed and waned over the years, but it remains a formidable player in the worlds of electronics and software. Open Network Lab, which provides a seed accelerator programme for Tokyo's startups, launched in 2010 and is currently in its 14th wave of funding, having fostered a number of Japanese success stories including Dreampass and AnyPerk."
City population: 13.6 million
City GDP per capita: $34,959
Established tech firm office rent per week per sq ft: $125
Prime residential rent per week: $2,661
Cost of a Flat White: $4.02
Startups per 1,000 people: 0.04
Average commute by employees working in key tech districts: 24 minutes
Cost of a single journey on local transport: $1.87
Annual passengers across the city's airports: 110.1 million
Summary: "Hong Kong's startup ecosystem is relatively young, but growing: spurred by government funding from InvestHK, the city now has over 1,500 startups from foreign and home-grown entrepreneurs. While perhaps most famous for its financial credentials, Hong Kong's focus on ecommerce and information technology is helping to distinguish it from Asia's other Tech Cities."
City population: 7.3 million
City GDP per capita: $44,562
Established tech firm office rent per week per sq ft: $99
Prime residential rent per week: $2,150
Cost of a Flat White: $4.51
Startups per 1,000 people: 0.2
Average commute by employees working in key tech districts: 46 minutes
Cost of a single journey on local transport: $1.29
Annual passengers across the city's airports: 68.5 million
Summary: "Seoul earned the title ‘Miracle on the Han River’ for its rapid transformation into a global economic hub. Tech runs in the city’s veins, with residents early adopters of new technology with a particular emphasis on mobile. South Korea is the world's most R&D intensive country, yielding more patents per capita than any other."
City population: 10.3 million
City GDP per capita: $33,156
Established tech firm office rent per week per sq ft: $38
Prime residential rent per week: $600
Cost of a Flat White: $4.50
Startups per 1,000 people: 0.04
Average commute by employees working in key tech districts: 40 minutes
Cost of a single journey on local transport: $1.09
Annual passengers across the city's airports: 72.4 million
Summary: "Israel's reputation as a cybersecurity and data analytics centre of excellence is rooted in Tel Aviv, where the so-called 'Silicon Wadi' draws from a pool of home-grown talent in the military and banking sectors. With a vibrant and sophisticated startup scene, Tel Aviv's influence has been helped along by the success of companies like Fiverr."
City population: 426,000
City GDP per capita: $37,238
Established tech firm office rent per week per sq ft: $24
Prime residential rent per week: $1,817
Cost of a Flat White: $3.17
Startups per 1,000 people: 3
Average commute by employees working in key tech districts: 35 minutes
Cost of a single journey on local transport: $1.79
Annual passengers across the city's airports: 16.3 million
Summary: "Melbourne frequently jostles for status with Sydney, and both cities have a decent claim to being Australia's premier tech city. However, Melbourne's lower living and real estate costs, coupled with an enviable quality of life have made it a magnet for tech talent. It is this attractiveness that will see Melbourne’s population overtake Sydney's in the coming decades."
City population: 4.5 million
City GDP per capita: $45,874
Established tech firm office rent per week per sq ft: $45
Prime residential rent per week: $781
Cost of a Flat White: $2.62
Startups per 1,000 people: 0.2
Average commute by employees working in key tech districts: 19 minutes
Cost of a single journey on local transport: $2.84
Annual passengers across the city's airports: 32.3 million
Summary: "As the corporate headquarters of both Amazon and Microsoft (in Redmond), the region has a lot to offer — and there's plenty more activity in the pipeline, with Expedia recently announcing that it will relocate to the Elliott Bay campus in 2019. Google, Facebook, Twitter, Dropbox, SpaceX and many others have opened engineering offices in the city."
City population: 684,000
City GDP per capita: $87,734
Established tech firm office rent per week per sq ft: $41
Prime residential rent per week: $1,316
Cost of a Flat White: $3.49
Startups per 1,000 people: 3.1
Average commute by employees working in key tech districts: 41 minutes
Cost of a single journey on local transport: $2.74
Annual passengers across the city's airports: 42.3 million
Summary: "Dublin offers a young, tech-savvy workforce and a host of big names including AirBnb, Apple and Facebook. A business-friendly, low tax environment may have drawn big players to the city, but it is the city’s legendary social scene that cemented its position as a major global tech player."
City population: 528,000
City GDP per capita: $65,353
Established tech firm office rent per week per sq ft: $67
Prime residential rent per week: $862
Cost of a Flat White: $3.07
Startups per 1,000 people: 1.1
Average commute by employees working in key tech districts: 26 minutes
Cost of a single journey on local transport: $2.98
Annual passengers across the city's airports: 25 million
Summary: "Stockholm is famous for its uncanny ability to produce billion-dollar "unicorns" – Spotify, Mojang and TrueCaller are just a few. It's a city that regularly punches well above its relatively low population of less than a million. It offers residents a high quality of life and enviable work-life balance."
City population: 926,000
City GDP per capita: $67,084
Established tech firm office rent per week per sq ft: $59
Prime residential rent per week: $855
Cost of a Flat White: $3.65
Startups per 1,000 people: 0.6
Average commute by employees working in key tech districts: 20 minutes
Cost of a single journey on local transport: $3.80
Annual passengers across the city's airports: 27.4 million
Summary: "Singapore is rapidly becoming a world leader in Big Data — particularly after its government installed city-wide sensors collecting information on everything from traffic movements to crowd behaviour. The city-state's formidable financial sector and business-focused culture contribute to Singapore's reputation as a Tech City."
City population: 3.9 million
City GDP per capita: $52,965
Established tech firm office rent per week per sq ft: $115
Prime residential rent per week: $1,450
Cost of a Flat White: $3.67
Startups per 1,000 people: 0.5
Average commute by employees working in key tech districts: 35 minutes
Cost of a single journey on local transport: $1.33
Annual passengers across the city's airports: 55.4 million
Summary: "Berlin has long enjoyed a status as a European capital of art and nightlife, and in recent years its relatively low real estate prices, reasonable cost of living and wealth of technological talent have helped position it as a centre for start-ups and entrepreneurs. SoundCloud, one of the city's biggest successes, typifies the Berliner approach: innovative, disruptive and all-encompassing."
City population: 3.6 million
City GDP per capita: $37,328
Established tech firm office rent per week per sq ft: $25
Prime residential rent per week: $503
Cost of a Flat White: $3.30
Startups per 1,000 people: 0.5
Average commute by employees working in key tech districts: 23 minutes
Cost of a single journey on local transport: $2.98
Annual passengers across the city's airports: 29.5 million
Summary: "California may get all the glory, but the USA's East Coast isn't far behind when it comes to tech. Though pharma and biotech have traditionally been Massachusetts' big hi-tech industries, ecommerce, gaming and travel are also well-represented. Both Bill Gates and Mark Zuckerberg began their student lives in the Boston area – and lately, graduates have been sticking around to grow their companies instead of heading West."
City population: 667,000
City GDP per capita: $87,308
Established tech firm office rent per week per sq ft: $72
Prime residential rent per week per sq ft: $1,400
Cost of a Flat White: $3.37
Startups per 1,000 people: 5.8
Average commute by employees working in key tech districts: 35 minutes
Cost of a single journey on local transport: $2.50
Annual passengers across the city's airports: 39.1 million
Summary: "Copenhagen's tech startup scene has accelerated rapidly and already given birth to a few big successes: online takeaway giant Just Eat has its roots in a Danish basement. The city tops our 'wellness' ranking. The concept of 'hygge', the Danish way of making everyday living extraordinary, epitomises this."
City population: 591,000
City GDP per capita: $64,692
Established tech firm office rent per week per sq ft: $17
Prime residential rent per week: $982
Cost of a Flat White: $4.33
Startups per 1,000 people: 0.8
Average commute by employees working in key tech districts: 37 minutes
Cost of a single journey on local transport: $3.56
Annual passengers across the city's airports: 29.2 million
Summary: "The famously creative, bohemian capital is also home to a thriving tech scene. Scoring highly for both wellness and city buzz, and having the unique advantage of an almost completely bilingual culture (around 90% speak English and Dutch), Amsterdam has much to recommend it as one of Europe's major tech hubs."
City population: 840,000
City GDP per capita: $69,752
Established tech firm office rent per week per sq ft: $34
Prime residential rent per week: $1,315
Cost of a Flat White: $2.47
Startups per 1,000 people: 1.3
Average commute by employees working in key tech districts: 29 minutes
Cost of a single journey on local transport: $3.20
Annual passengers across the city's airports: 58.3 million
Summary: "Toronto's startup scene is booming, with around 3,000 ventures currently active and a number of Canada's home-grown heavy hitters, including Shopify, Hootsuite and Kik, maintaining a presence in the city. Ranking highly for quality of life, North America’s fourth largest city has a bright future ahead as one of the world's tech cities."
City population: 2.8 million
City GDP per capita: $44,907
Established tech firm office rent per week per sq ft: $25
Prime residential rent per week: $968
Cost of a Flat White: $2.48
Startups per 1,000 people: 1.1
Average commute by employees working in key tech districts: 40 minutes
Cost of a single journey on local transport: $2.29
Annual passengers across the city's airports: 43.4 million
Summary: "As a global banking powerhouse, it's no surprise that London's also one of the world's financial technology capitals. Fintech disruptors TransferWise and Funding Circle began their journeys here, with many more expected to follow from East London's Silicon Roundabout. Excellent universities and proximity to Europe's busiest airport cement London's position as a Tech City."
City population: 8.7 million
City GDP per capita: $63,739
Established tech firm office rent per week per sq ft: $94
Prime residential rent per week: $1,981
Cost of a Flat White: $3.32
Startups per 1,000 people: 1
Average commute by employees working in key tech districts: 29 minutes
Cost of a single journey on local transport: $3.32
Annual passengers across the city's airports: 153.5 million
Summary: "New York boasts a diverse range of talent from the financial and retail sectors to support its technological offering. Prices may be high, but the opportunities are great: world-renowned universities, a business-focused culture and global links make New York attractive for start-ups and multinationals alike."
City population: 8.5 million
City GDP per capita: $83,470
Established tech firm office rent per week per sq ft: $81
Prime residential rent per week: $1,482
Cost of a Flat White: $3.60
Startups per 1,000 people: 1.8
Average commute by employees working in key tech districts: 29 minutes
Cost of a single journey on local trans pot: $2.75
Annual passengers across the city's airports: 126.7 million
Summary: "San Francisco's tech credentials are almost too numerous to mention: Twitter, Airbnb, and Uber are just a fraction of the city's success stories. A wide array of talent and a rich business ecosystem makes San Francisco a startup magnet."
City population: 865,000
City GDP per capita: $97,856
Established tech firm office rent per week per sq ft: $71
Prime residential rent per week: $1,484
Cost of a Flat White: $3.75
Startups per 1,000 people: 26.3
Average commute by employees working in key tech districts: 33 minutes
Cost of a single journey on local transport: $2.25
Annual passengers across the city's airports: 71 million
Summary: "Austin ranks as the world's number one Tech City. IBM, Dell, and AMD all have a long-established presence here, and today low taxes, favourable real estate costs and a strong entrepreneurial culture mean the Texan capital maintains a thriving and innovative start-up scene, with access to some of the world's top talent."
City population: 932,000
City GDP per capita: $62,376
Established tech firm office rent per week per sq ft: $54
Prime residential rent per week: $1,002
Cost of a Flat White: $3.50
Startups per 1,000 people: 2.7
Average commute by employees working in key tech districts: 16 minutes
Cost of a single journey on local transport: $1.75
Annual passengers across the city's airports: 11.9 million
Don't miss any update on this topic
Create a free account and access your personalized content collection with our latest publications and analyses.
License and Republishing
World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.
The views expressed in this article are those of the author alone and not the World Economic Forum.
Stay up to date:
Cities and Urbanization
Related topics:
The Agenda Weekly
A weekly update of the most important issues driving the global agenda
You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.
More on Fourth Industrial RevolutionSee all
Daniel Dobrygowski and Bart Valkhof
November 21, 2024
