Dublin In Top 3 Ranking For Largest Tech Clusters In New CBRE Study
London, Madrid and Dublin top the ranking of large clusters
More than 40% of Dublin office take-up in H1 2018 was to technology companies
Thames Valley, Oslo and Basel rank highly among medium-sized clusters
Derby-Nottingham, Florence and Krakow score top places for smaller growth clusters
London, 05 September 2018 – London has topped a ranking for EMEA’s largest technology clusters, according to research from CBRE, the world's leading real estate advisor while Dublin is in the Top 3 large tech cluster cities. The report EMEA Tech Cities: Opportunities in Technology Hotspots, published today, provides a framework for occupiers and investors to assess the characteristics of technology clusters in economic, leasing and employment terms at regional and city level. The analysis identifies four separate categories of technology cluster in the EMEA region, based on a city’s level, concentration and growth of tech sector employment. This approach reflects the fact that technology clusters are very diverse in their structure, cost base and attraction to specialist technology sub-sectors.
The large clusters ranking headed by London, covered capital cities and business centres with more than 70,000 people in tech employment. London’s top position in this ranking is partly due to its ability to attract young millennial talent. London’s overall employment in the Information and Communications Technology (ICT) sector has grown by 20% since 2008, with its proportion of ICT employment at almost two and a half times the EU average. Meanwhile, Dublin (which was ranked No. 3 in the Large Clusters category) also ranks highly with both large and small tech occupiers expanding and looking to secure accommodation in the Irish capital.
Dublin’s continued success in growing its tech presence is supported by strong Government and IDA promotion, particularly toward US companies attracted by the cultural affinity and attractiveness of the city to young talent from across Europe. More than 40% of overall office take-up in Dublin in the first half of 2018 was accounted for by tech occupiers, most of whom were expanding existing operations, which is indicative of their positive experience in the Irish capital.
Two further categories focus on medium-sized of between 20-70,000 tech employees. Most of the high-ranking locations in these categories are either established tech locations, such as the Thames Valley in the UK; places where tech has grown to support other activities, such as Vienna and smaller regional centres supported by a strong tech-university presence such as Basel.
The final category looks at smaller growth clusters, defined as locations with double-digit growth in tech employment both since 2010, and forecast over the next five years. Derby/Nottingham, Florence and Krakow all rank highly in this category. There is less uniformity in this category than in the others. Some cities have grown supporting other sectors, others are low labour cost destinations in CEE and some are second tier cities and regional business centres. Many are cities that are “cool” to work in for lifestyle reasons, rather than having the legacy of an established tech sector.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie