Tech Hubs Develops Real Estate In Digitally-Inclined Cities
The US' Silicon Valley started the trend of cities flourishing once the money started rolling in.
Tech hubs such as this, Mansion Global reported, became much sought after by people looking for investments and opportunities alike. Now, 'Silicon Valleys' is growing all over the country, particularly in the cities of Los Angeles and Pittsburgh, which seem to be more attractive to tech companies that most.
Pittsburgh is an incredible tale of transformation. Being an industrial town, Pittsburgh had grown to become a city transformed into a technology center. One-quarter of its workforce works in this sector. LA, meanwhile, was known more for movies than anything else. It is a case of the rich getting richer as companies like Amazon, Google, and Snapchat have started moving in.
The movement isn't happening in the US only as the world has its own tech hubs beginning to flourish. In Israel, Tel Aviv boasts of 6,000 firms dabbling in technology; impressive for a city with just a 9 million-strong population. Shenzhen, in China, is another case of transformation as 3,000 tech companies have set up their business in a town more famously known for fishing.
Real estate investors may be on to something here, but tech hubs are just too attractive an asset to pass up.
According to Geek Wire, Jones Lang LaSalle found a connection between the dollars spent in investing in these communities with the level of innovation that's found within these cities.
Nine cities have been pinpointed as having that kind of innovation investors can be comfortable about. Listed in this list as a few cities from the US--Boston, New York, San Francisco, Seattle, and San Jose made the list.
There are European bastions with London and Paris making the cut. Internationally, Sydney and Tokyo made it to the list. All of these cities are within the top 20 cities in the list.
It is also interesting to see how the trend has been changing. In the past, investing in tech hubs were only part of an investment strategy; now, the emphasis has been given on investing in these cities. There have been instances when investments into these cities were part of the main strategy. More and more investors have been mainly targeting these tech hubs.
With the rise of more tech hubs all over the world, time will only tell whether this will develop into niche investing for some investors or it will become the main target. One thing's for sure--the future will see more tech hubs grow, and it can only be good for those who are looking to diversify their assets or grow their portfolio of investments.