San Francisco and New York top the Index; London climbs to third
San Francisco and New York top the Index; London climbs to third
Singapore has broken into the top 10 of the biennial Savills Tech Cities Index, rising three places to 9th. The city state’s rise is boosted by its political and regulatory stability, world-class infrastructure, and strong business environment. Seoul has reached 10th, climbing four places supported by rising city wealth, increasing net migration, and expanded government support for AI, semiconductors, quantum computing, and biotech. Both Singapore and Seoul share low office vacancy rates and limited supply that have driven up rents.
San Francisco tops the Index, due to its role as the epicentre of AI development and renewed confidence in the city’s tech ecosystem. Office demand is above the five-year average, and top-tier prime office rents have risen 10.5% over the last two years, with the tech industry accounting for 70% of the largest new office leasing deals. In second place, New York, while more diversified across tech subsectors, benefits from a deep pool of talent and complementary industries, as well as its role as a cultural and lifestyle hub. North American cities make up half of the Tech Cities top ten and 40% of the top 30, reflecting the US’s continued dominance in global tech.
Hailing from Europe, London is now the third placed city globally. It is deemed the Tech City with the highest number of top ranked universities, spurring innovation and producing highly skilled graduates, and is particularly strong in Fintech, CleanTech, DeepTech and AI. After London, European cities in the Index include Paris (15th), Berlin (19th), Stockholm (22nd), Amsterdam (24th), and Munich (25th). Amsterdam, up five places, has seen funding into DeepTech and FinTech more than double since 2023. Barcelona (39th) and Madrid (45th) have climbed more than 10 places each, driven by a strengthening Spanish economy and growing, skilled populations.
Elsewhere in Asia, six Chinese cities rank in the top 30 with Shanghai (5th) and Beijing (6th) leading regional performance. China’s tech cities benefit from a vast domestic market and increasingly mature homegrown ecosystems.
Paul Tostevin, Head of Savills World Research: “The tech industry is undergoing major transformation due to AI. Despite the potential monumental advances being made, however, human capital remains tech’s most important asset, so city attractiveness matters to companies trying to recruit the best talent. The cities that appear high in our Index provide vibrant city living, cultural and lifestyle offerings, with many smaller cities – by global standards – punching above their weight. However, the biggest players, with their diversity of offer, broad business bases, and deep talent pools, ultimately dominate the top ten.
For investors, landlords and developers, a high performing Tech City will see increasing demand for real estate in the form of more office space for tech occupiers, or housing that meets the need of a highly skilled, mobile workforce.”
In the Middle East, Dubai has risen 20 places to 43rd, propelled by AI strategies alongside rapid population and business growth as well as lifestyle attractiveness.
As part of its Impacts thought leadership programme, Savills has measured the business and tech environments, buzz and wellness, talent pool, and the strength and depth of different tech sub sectors across 100 cities worldwide, to determine which are driving tech innovation and attracting tech talent. Founded in 2015, the Tech Cities Index reveals that the top-performing cities are hotspots for venture capital and home to a broad spectrum of tech specialisms, as well as tending to be home to world-leading universities.