Emerging Markets

Lasting impacts of the COVID pandemic have fundamentally shifted real estate market dynamics. While this has created challenges, it has also opened opportunities to employ tech talent in distant markets.

Forty potential emerging markets were selected based on a variety of factors. The 20 emerging markets from last year’s report were excluded.

The importance of technology in business and society continues to fuel tech talent workforce expansion globally. Remote and hybrid work normalization since the pandemic has allowed companies to implement more distributed labor strategies to fulfill tech talent demand, innovation and efficiency. This became a catalyst for the emergence of many markets not large or mature enough to be considered established tech clusters. These markets all hold strong growth potential and may offer cost benefits for companies as workforce supply remains tight in many legacy tech markets.

Figure 19: Emerging Tech Talent Markets

Emerging clusters must further evolve and build upon essential tech ecosystem components to become competitive on a global scale. Their emergence relies on tech industry trends and a combination of the following factors that have the potential to propel some locations into self-sustaining growth.

A culture of startups, scale-ups and incubators: Markets with funding programs and support networks that foster the growth of startup companies include Turin, Lille and Kuala Lumpur. Chinese AI startups are forming a significant cluster in Hangzhou.

Government incentives and policy initiatives: These range from promotional marketing initiatives in Porto to supporting specific districts or business parks in Casablanca and more far-reaching structural changes in Dubai that increase the attractiveness of venture capital investment. Bangkok and Jakarta are accelerating advanced industry and tech jobs through strategic government capital investments and tech-friendly labor policies.

Favorable linkages with parts of the local economy: Leveraging existing expertise in certain industries creates opportunities for innovation, such as aerospace in Toulouse, energy in Edmonton and automotive in Leipzig, that can contribute to emerging tech clusters. Digital trade has rapidly developed in recent years, boosting cross-border e-commerce and creating economic growth opportunities in less-developed nations such as Vietnam and Thailand.

Quality of life attributes: Attractiveness to mobile tech talent and digital nomads that favor quality-of-life and cost-of-living attributes has benefited Ho Chi Minh City, Belgrade and Katowice, where vibrant affordable lifestyles are contributors to growth.

Education and skills: University partnerships with tech companies are crucial for developing the next generation of tech talent. Educational institutions specializing in computer science, technology and engineering have boosted tech talent in Belo Horizonte (Brazil), Accra and Cairo, attracting tech companies. Zhejiang University in Hangzhou and the University of Malaya in Kuala Lumpur are among the top 100 globally and produce skilled tech talent.

Different permutations of these factors will drive growth in different places. Thus, it’s important to develop an understanding of the specific mix of factors that can elevate a market’s competitive position.

North America

Colorado Springs, CO

A cluster of military and educational institutions has supported a growing technology industry with major employers specializing in aerospace and defense, information technology and cybersecurity. A burgeoning startup ecosystem and tech talent pipeline has also emerged. The long-term growth drivers include a skilled and growing labor force, in-migration, investment in tech infrastructure and partnerships between educational institutions and industries.

Des Moines, IA

The market has emerged as a hotspot for agtech, fintech, insurance, data centers and manufacturing. Comparatively low power and labor costs, competitive tax incentives and increasing public-private partnerships have drawn in major tech-focused companies to the area. Des Moines’ central U.S. location also makes it ideal for logistics and transportation operations. Local universities provide a talent pool with the skillsets to support the region’s various industries.

Edmonton, Alberta

Leading universities and research initiatives are fostering technology and AI innovation. The city’s young and educated workforce, low corporate tax rate and low cost of living are key ingredients to further grow this emerging tech hub. The University of Alberta is a top-ranked institution for AI and other tech programs. A group of private and public Edmonton leaders is participating in MIT’s prestigious REAP global program that engages with communities around the world to strengthen innovation-driven entrepreneurial ecosystems and transform economies.

Grand Rapids, MI

Software development, manufacturing technology and cybersecurity are specialties of this tech hub. Local organizations like The Right Place and the West Michigan Center for Arts and Technology are dedicated to growing the pool of tech talent. Concentrated population growth, public-private partnerships and the pipeline of graduates from area colleges are contributing to the region’s rise as at tech hub.

Las Vegas, NV

Key tech sectors in the region include AI, cybersecurity, green tech and software development. In addition to a growing startup ecosystem, many larger tech companies have established a presence to tap into tech talent expertise in the fields of software development, video gaming and data center infrastructure and operations. UNLV's National Supercomputing Institute, major tech conferences, no state tax and low living costs all support this dynamic tech ecosystem.

Stamford, CT

Located near many top universities and within Connecticut’s Innovation Corridor, Stamford is emerging as a significant tech hotspot. The city’s key tech industries include finance, cybersecurity and healthcare. Proximity to New York City provides access to one of the most skilled and educated tech workforces in the nation, attracting both startups and established tech companies.

Europe

Belgrade, Serbia

Highly skilled tech professionals and a thriving startup scene have attracted many tech employers to this growing market. The city's vibrancy and low-cost environment also attract professionals from around the world. Many tech-related events have created a sizable digital nomad community.

Katowice, Poland

The city's strategic location at the intersection of European transportation networks has helped it become a major industry and logistics hub and attracted many technology companies. The IT sector accounts for about one-quarter of office space demand in the city, with companies benefiting from its favorable business environment, skilled workforce and relatively low costs. Government initiatives to support entrepreneurship and innovation have created a thriving startup ecosystem. The region's strong educational institutions also provide a steady supply of talented professionals.

Leipzig, Germany

The clustering of industrial and technology companies has created a leading environment for innovation, particularly in the areas of automotive production, electric vehicles, intelligent medical devices, e-health applications and advanced therapeutics. The city is also renowned for its prestigious universities and research institutions, which play a central role in development of a dynamic startup ecosystem.

Lille, France

Lilie is building upon its traditional industrial base and transforming to a more digital economy that leverages existing skilled labor and a growing talent pipeline from reputable regional schools and universities. The city is home to one of the largest startup incubators in Europe, EuraTechnologies, with 150,000 square meters of office space. This innovation center supports hundreds of digital and technology projects each year and accelerates startup growth in the region.

Malaga, Spain

A major tech company opening its first cyber security center in Europe several years ago validated Malaga as an important and emerging tech center. The city’s quality of life and ability to attract tech talent led to a rapidly growing business ecosystem that attracts many tech companies and startups. Interuniversity Microelectronics Centre (IMEC) is developing advanced semiconductor chips that will generate highly skilled jobs, foster a dynamic entrepreneurial ecosystem and attract international talent and innovative startups.

Porto, Portugal

Porto’s highly skilled and multilingual talent pool, state-of-the-art digital infrastructure and strong support from local institutions have produced a dynamic tech ecosystem. The city is home to more than 800 startups, along with universities and research and development facilities that foster a culture of entrepreneurship and innovation. At least 10 unicorn companies have successfully leveraged Porto's strategic location, reasonable salaries and high quality of life. Porto is one of Europe's top mid-to-large-sized cities for foreign direct investment, particularly for infrastructure (new metro lines and high-speed train projects) and supportive business initiatives like InvestPorto.

Toulouse, France

The city’s well-established economic base provides a foundation for a growing tech sector. Europe’s largest aerospace and aeronautics industrial complex and renowned schools and universities that produce skilled labor have attracted a wide array of digital and tech companies. French Tech Toulouse is Europe’s second largest entrepreneurial association and a major catalyst for the tech ecosystem.

Turin, Italy

The local tech sector is expected to grow at a faster pace over the next five years. The city is known for innovation in the fields of AI, machine learning and quantum computing that is fostered by the Ai4Industry Institute and the European Space Agency Business Incubation Center. Tech Stars, a coveted business accelerator to help tech entrepreneurs succeed, has an annual program in Torino, one of only four in Europe.

Asia-Pacific

Ahmedabad, India

The favorable business environment, ongoing infrastructure development and skilled workforce have driven growth in key tech subsectors, including software, IT services and fintech. The market composition includes a blend of startups, mature tech firms and non-tech employers such as finance and commodity trading companies. Ahmedabad is currently developing the 22 million-sq.-ft. Gujarat International Finance Tec-City, which will house 550 businesses employing over 20,000 people.

Auckland, New Zealand

Auckland’s highly educated workforce and top educational institutions make it a thriving hub for technology companies. The city is home to more than half of New Zealand’s top 200 tech companies, employing over 57,000 people. The tech sector offers competitive salaries, with senior roles such as front-end developers earning around NZ$130,000 and cybersecurity architects up to NZ$170,000. Tech companies occupy more than 50,000 sq. meters of office space in the CBD and 55,000 sq meters of industrial space. Key tech submarkets around the city account for another 25% of this space, including Albany, Ponsonby, Greenlane and College Hill.

Bangkok, Thailand

Bangkok is Thailand's central hub for fintech and e-commerce, attracting many startups. The government provides incentives for venture capital investment, with a goal of creating a workforce of 280,000 advanced industry jobs over the next five years in sectors such as semiconductors, electric vehicles and artificial intelligence. The city benefits from the nearby Eastern Economic Corridor, a special economic zone that aims to create a value-based economy driven by innovation and technology. Newly built transportation, logistics and trade infrastructure are key components of the growth strategy.

Fukuoka, Japan

Among the major regional cities in Japan, Fukuoka has recorded the fastest population growth over the past decade and boasts the highest percentage of young people (15 to 29 years old) and foreign residents. The city's growth strategy is three-pronged: boost visitations through promotion of conferences and conventions; offer knowledge-based industries certain incentives such as streamlined foreign visas, and foster the modernization of business districts by assisting local businesses and startups.

Hangzhou, China

This key tech city in China is characterized by its strong e-commerce presence, leading companies, skilled workforce and supportive government policies. The rise of the e-commerce powerhouse Alibaba and the AI platform Deepseek have solidified the city's technology sector as a pillar of the local economy, fostering significant advancements in software development, cloud computing, big data and artificial intelligence.

Ho Chi Minh City, Vietnam

Vietnam's semiconductor industry is centered and growing rapidly in Ho Chi Minh City, along with a blossoming startup ecosystem. The city’s number of hardware engineers in the chip sector is expected to grow to grow from 6,000 currently to 20,000 in five years and 50,000 in a decade. Notable tech hubs include the Saigon High-Tech Park, which focuses on education, biotechnology, startup incubators, training centers, software development, R&D and telecommunications. The Vietnam National University IT & EduTech Hub supports the tech industry through research and collaboration. The large and young talent pool in Ho Chi Minh City gives it the potential to become an established tech market.

Jaipur, India

This city’s growing tech ecosystem and supportive business environment has attracted a mix of startups and large companies in key tech subsectors such as software development, IT services and data science. The market is dominated by larger IT services and domestic companies due to its lower labor costs than other India tech hubs in the Delhi-NCR region.

Jakarta, Indonesia

The large population and skilled workforce make Jakarta an attractive tech market. The city is promoting foreign investment in its digital economy and encouraging a return of overseas Indonesian tech talent to the local technology sector. The Indonesian government has funded training in digital tech skills for more than 500,000 of its citizens since 2018.

Kuala Lumpur, Malaysia

The city will play a leading role in the Malaysian government's plans to become one of the top 20 countries for tech startups by 2030. Key incentives include tax breaks, subsidies and visa exemptions to attract companies to a planned semiconductor design park in Kuala Lumpur. The city also is prioritizing the data center industry by offering services like chip provision and original design manufacturing.

Nanjing, China

Supported by prestigious universities and research institutions, Nanjing is positioning itself as a key tech market in China. The city offers a diversified tech ecosystem with a strong emphasis on research and education, especially in telecommunications. Nanjing is home to major tech companies like Huawei and Honor, as well as numerous unicorns.

Latin America

Belo Horizonte, Brazil

Local universities and a startup ecosystem are supporting tech talent workforce growth. Universidade Federal de Minas Gerais, Universidade do Estado de Minas Gerais and Pontifícia Universidade Católica de Minas Gerais are producing high quality tech talent specializing in software development, data science, artificial intelligence and cybersecurity. Initiatives like the San Pedro Valley tech community further foster innovation and collaboration among tech professionals.

Campinas, Brazil

Located near Latin America’s largest tech hub of São Paulo, Campinas offers a sizable tech talent workforce educated by local universities in engineering, computer science and information technology. The city places a strong emphasis on research and development initiatives, with many companies and institutions engaging in collaborative innovation. Several multinational companies in sectors like software development, biotechnology and telecommunications have established operations in Campinas.

Florianopolis, Brazil

Often referred to as Silicon Island, Florianópolis has become a significant tech hub in Brazil. The city is known for its growing tech talent pool, attractive government incentives and higher education institutions. Federal University of Santa Catarina offers programs in computer science, engineering and related fields. The city's high quality of life, combined with its natural beauty and recreational opportunities, attracts tech talent from other regions of Brazil. Software development is a key focus, but tech expertise spans various sectors, including e-commerce, fintech, health tech and digital marketing.

Leon, Mexico

León is home to several universities and technical institutes, such as the University of León and the University of Guanajuato, which offer programs in engineering, computer science and information technology. The city has a vibrant tech startup ecosystem focusing on software development, e-commerce, fintech and other technology-driven sectors. The state government of Guanajuato offers aggressive incentives for tech companies locating or expanding in Leon.

Puebla, Mexico

This city’s is attracting tech talent and investment through its educational resources, startup culture and local government engagement. Puebla is home to several universities and technical institutes that contribute to the development of a skilled tech workforce, including Benemérita Universidad Autónoma de Puebla and Universidad de las Américas Puebla. These and other universities provide graduates with major tech skills, including software development, data science, machine learning and business intelligence.

Lima, Peru

Lima’s rapidly growing tech talent workforce has positioned it as one of Latin America’s top emerging tech hubs. Pontificia Universidad Católica del Perú and Universidad de Lima are among the top institutions offering degrees in engineering, computer science and information technology. Technical institutes also contribute to the talent pool by providing specialized training in programming, software development and IT skills. Many of the city’s low-cost tech professionals speak English and offer a wide range of skills such as software development, data science and web and mobile development.

Medellin, Columbia

The tech talent ecosystem has experienced significant growth and transformation in recent years, positioning Medellin as a prominent tech hub in Latin America. Specialty skills offered by the local workforce include software development, data science and web and mobile app development. A pro-business government has helped attract multinational companies to the city’s growing tech ecosystem.

Montevideo, Uruguay

The local tech ecosystem is enhanced by strong educational resources, a stable economy and the presence of many startups and multinational companies. The high rate of English proficiency among tech professionals allows for greater participation in the global tech market. Montevideo is home to several universities that contribute to the development of a skilled workforce in technology, including Universidad de la República, Universidad ORT Uruguay and Universidad Católica del Uruguay. Some of the tech skills available in the market are Java, Python, JavaScript, Ruby, R, Python, SQL and Tableau.

Panama City, Panama

The local tech ecosystem is supported by a combination of strong educational resources, an emerging startup culture, supportive government initiatives and a multilingual workforce with a high rate of English proficiency. The combination of a strategic location, a growing tech community and a commitment to innovation makes Panama City an attractive destination for tech professionals and companies looking to establish a presence in Central America. The city is home to several universities and technical institutions that produce tech talent, such as Universidad Tecnológica de Panamá and Universidad de Panamá. The government offers tax incentives for tech companies and startups, particularly those involved in developing software and IT services.

Quito, Ecuador

Quito’s tech ecosystem is in the early stages of development. The city's emphasis on education, innovation and English proficiency among its workforce will likely enhance its position as an emerging tech market. Several major tech employers and startups are present in Quito. As the city continues to develop as a tech hub, it is well-positioned to attract talent and investment.

Recife, Brazil

A sizable tech ecosystem has developed in recent years, fueled by educational institutions, a growing startup scene and government support for innovation. Recife is home to several universities and technical schools that are instrumental in developing tech talent, including Universidade Federal de Pernambuco Instituto Federal de Pernambuco and Universidade de Pernambuco. The local tech talent workforce encompasses a wide range of skills, including software development, data science and cybersecurity. Recife is home to Porto Digital, one of Brazil's largest technology parks that hosts a wide array of startups and tech companies.

Middle East & Africa

Dubai, United Arab Emirates

The UAE government strongly supports tech startups through initiatives, venture capital funding and accelerator programs. Changes to company ownership and visa laws, including a five-year “golden visa” for entrepreneurs, has helped drive significant growth in tech talent. Dubai Internet City and Dubai Silicon Oasis have become tech hot spots for major tech companies and startups. A national strategy for artificial intelligence and plans to make the digital economy 20% of GDP by 2030 have led to successful partnerships with major tech firms. Large investments in digital infrastructure have created a hub for data centers.

Accra, Ghana

This West African city has become a gateway for technology and innovation in the region. It has seen significant investment in digital infrastructure, including widespread mobile internet coverage and fiber-optic networks. Accra’s talent pool is supported by local universities producing graduates in computer science, engineering and business, as well as by government initiatives such as the Ghana Digital Transformation Strategy. Areas like East Legon and Airport City host multinational tech companies, incubators and innovation hubs.

Cairo, Egypt

This city is one of Africa's largest tech hubs, offering a dynamic mix of skilled talent, strong entrepreneurial culture and extensive digital infrastructure. Cairo University and the American University in Cairo produce thousands of tech graduates annually. Tech companies are drawn to Cairo's reasonable operational costs and access to regional markets across the Middle East and Africa. Nasr City and New Cairo are hotspots for tech companies and innovation centers. Cairo's startup ecosystem is thriving, supported by initiatives like the Central Bank of Egypt's FinTech Innovation Fund and government-backed programs fostering AI, e-commerce and cybersecurity. The city’s vibrant culture and strategic location position it as a gateway for tech companies looking to scale across Africa and the Arab world.

Casablanca, Morocco

As Morocco’s financial and business capital, Casablanca is fast becoming a major tech hub in North Africa. The city benefits from its strategic location and robust telecommunications infrastructure that links Europe, Africa and the Middle East. Casablanca's tech talent pool is nurtured by its world-class universities and technical institutions, producing graduates skilled in software development, AI and data analytics. The city has attracted significant foreign investment through incentives offered by the Moroccan government to boost innovation. Casablanca’s vibrant startup scene, supported by incubators and accelerators, makes it a prime destination for multinational tech companies expanding in North Africa.

Johannesburg, South Africa

Often referred to as the economic powerhouse of Africa, Johannesburg is a leading hub for tech innovation on the continent. The city has a diverse pool of skilled professionals, fueled by its leading higher education institutions offering courses in IT, engineering and data sciences. Johannesburg's tech ecosystem is bolstered by its vibrant startup culture, access to venture capital and supportive government incentives. Sandton and Rosebank are key commercial hubs attracting many tech companies and incubators. The city also benefits from advanced digital infrastructure, including high-speed internet and robust cloud services.