Today’s global trend towards urbanisation means that for corporates to successfully attract the right global talent and innovation by way of tech start-up occupiers and workers to tech cities, at reduced costs, whilst sustaining high productivity, a number of key elements must exist.
A growing tech city requires an area to have affordable accommodation, within a region where there is a distinct “city buzz” factor, as a result of shopping facilities, restaurants and nightlife through which a vibrant creative hub is created, at the same time as having a “wellness” theme present. To the younger generation of workers, wellbeing is now paramount and seen to be achieved as a result of amenities such as short commute distances to work, the availability of quality parks, healthcare and low pollution / congestion levels, being some of the considerations taken into account.
Vital factors in determining where tech workers and start-up companies will locate themselves is linked to the availability of low cost rental accommodation along with the infrastructure base, allowing workers to maintain a healthy lifestyle, whereby they can within a short time commute to the office by cycling or walking, as opposed to travelling by subway/metro train or by car.
An environment with a buzz, often eventually leads to an increase in population of young professionals and hikes in the demand and cost of rental property. Although demand for such areas will stay high despite higher rents due to the proximity to work and the buzzing atmosphere, there will always be the newest generation on the look-out for a new and untapped property area with lower property costs, which fulfils their specific criteria.
The current trend is directing tech businesses and young tech talent away from reduced cost business parks (mostly accessible by car) and seeing them migrating back to cities, such as London, Berlin, Copenhagen, Stockholm, Cape Town, Melbourne, Austin and Houston, creating huge growth in city populations.
Living and working in a in a thriving and energetic tech city, which allows a balance between maintaining physical and mental health, in low value accommodation with minimal living costs is seen as ideal. This allows a good quality work/life balance to be achieved and such areas will continue to be in demand and deemed to be the most desirable areas to create a tech hub.