New York City may overtake San Francisco in attracting more technology companies in the years to come, largely due to its abundance of venture capital and the city’s talent pool.
New York tops real estate brokerage Savills’ index of the world’s best 30 cities for technology companies, on which San Francisco and London are ranked second and third respectively.
Elsewhere in Latin America, Chilean capital Santiago and Buenos Aires also feature on the index, ranking 27th and 28th respectively, ahead of India’s IT capital Bangalore and South Africa’s Cape Town.
New York’s reputation in the technology market is growing, with several tech giants – including the likes of Amazon, Google, and Apple – having unveiled plans to expand operations there.
Savills says it took into account several factors, including availability of talent pool, venture capital funds, real estate prices, living costs, and access to transit, among others.
A rising pool of talent and low cost real estate are the factors that helped Buenos Aires earn a place on the index. On the other hand, the high cost of real estate has turned out to be a drag on San Francisco’s reputation as the world’s technology superpower.
Office space, as well as co-working space, is expensive in San Francisco, due to demand outstripping supply, the report added.