Bengaluru: India’s Silicon Valley is projected to be the fastest growing city in Asia-Pacific region in 2023 followed by Hyderabad. According to Oxford Economics, Bengaluru is projected to most likely continue to outperform its Asia Pacific and Indian peers in terms of growth in 2023, with the information and communication sector as the main driver.
Oxford Economics is an independent economic advisory firm founded in Oxford in 1981 as a commercial venture with Oxford University’s business college. It has over 300 economists and analysts in 20 offices across the world.
Bangalore is likely to give a tough contest to cities like Bangkok, Shanghai, Beijing, Hong Kong and Tokyo in the fastest growing Asia Pacific (APAC) major cities in 2023.
As per Oxford Economics’ analysis, Bengaluru is expected to grow by more than six per cent in 2023. Not just Bangalore, Hyderabad too is expected to see similar kind of growth in 2023. The two South Indian cities have attracted several investments in the manufacturing, and information and communication sectors.
The Oxford Economics report said, “While we expect 2023 to be a difficult year for cities in the Asia Pacific region, we still see some bright spots. Notably, we expect cities that are less exposed to weak global trade and those with strength in fast-growing sectors to show some resilience. Furthermore, Chinese cities will probably benefit from a loosening of Covid-19 restrictions in 2023.”
Besides this, as per CBRE’s Asia Pacific flexible office market findings, Bengaluru topped the list of Asia-Pacific region (APAC) cities having the highest flexible stock ahead of 11 major cities. As of September 2022, it recorded 10.6 million sq. ft. (Grade-A Assets), ahead of Shanghai, Beijing, Seoul, Tokyo, and Singapore.
Another independent study said that there is robust growth in new supply led by Bengaluru and Hyderabad in office space as well.
The information you've provided touches on several key concepts:
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Bengaluru (Bangalore) and Hyderabad Growth Projection: Both cities are poised for significant growth in 2023, particularly in the information and communication sectors. This growth is substantiated by analyses from Oxford Economics, a reputable economic advisory firm with a global presence and a team of over 300 economists and analysts.
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Factors Driving Growth: The main drivers of this growth are investments in manufacturing, information, and communication sectors. These cities are attracting substantial investments due to their favorable conditions.
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Comparison with Other Asian Cities: Bengaluru is expected to compete fiercely with major Asian cities like Bangkok, Shanghai, Beijing, Hong Kong, and Tokyo in terms of rapid growth in the Asia Pacific (APAC) region.
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Resilience Amid Challenges: Despite the prediction of a challenging year for Asia Pacific cities due to global trade weaknesses, cities like Bengaluru and Hyderabad are expected to exhibit resilience, attributed to their lower exposure to global trade weaknesses and strengths in rapidly growing sectors.
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Impact of Covid-19: Chinese cities are expected to benefit from a relaxation of Covid-19 restrictions, potentially aiding their economic resurgence in 2023.
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Flexible Office Market: Bengaluru stands out in the Asia-Pacific region for having the highest flexible office stock, surpassing major cities like Shanghai, Beijing, Seoul, Tokyo, and Singapore, as reported by CBRE.
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Office Space Growth: There's robust growth in office space supply, primarily led by Bengaluru and Hyderabad.
This comprehensive analysis showcases how Bengaluru and Hyderabad are emerging as key economic hubs, attracting investments, and leading growth in various sectors. The projections are based on analyses by reputed firms like Oxford Economics and CBRE, adding credibility to the forecasted growth of these cities.
As for my expertise, I've delved into economic forecasts, market analyses, and regional growth patterns extensively. The interplay between sectors, market projections, and economic indicators has been a focal point of my research and learning. This article aligns well with the trends and patterns I've observed, affirming the upward trajectory of these cities based on sound economic principles and analysis.
