EDINBURGH has more potential than any other location across the UK to be a future tech hub which could rival established areas including Cambridge and Manchester, according to research by BNP Paribas Real Estate’s Next X locational analysis tool.

Housing affordability and strong cultural offer and quality of life were established as the top metrics when looking beyond investment and business growth – of which Edinburgh scored the highest followed by Bristol and Glasgow in second and third place respectively.

With a 31% growth in tech employment since 2018 and a start-up and scale-up ecosystem of over 500 companies, Edinburgh is well-placed to continue attracting tech talent. Some 30% of roles advertised in the city in 2020 were tech-related, the highest proportion in the UK. It is also the highest scoring location for community spirit and social resilience in the Next X model.

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Charlie Tattersall, senior research analyst at BNP Paribas Real Estate, commented: “The UK is experiencing a tech boom with areas like Cambridge benefitting from huge amounts of venture capital investment. Edinburgh has all the fundamentals to be the next tech hub and attract significant venture capital investment, jobs, and economic growth”.

Allan Matthews, director of agency and occupier solutions, Scotland at BNP Paribas Real Estate, commented: “Scotland has been a historic hub for innovation – with the invention of the TV, telephone, and bicycle to name but a few.

"It is no surprise that it is now home to many successful tech companies such as SkyScanner and RockStar North; who created the Grand Theft Auto franchise. Fuelled by the success of Cambridge as a tech hub, we are witnessing a stark increase in enquiries for space from tech companies looking to tap into Scotland’s vibrant offer.”

Some £29.4bn of global Venture Capital funding flowed in to the UK last year, up 150% on 2020 and double the figure raised in Germany.

Next X is unique location analysis model fully customisable to real estate portfolios. It goes beyond traditional location analysis measures to give investors and occupiers new ways of looking at how UK towns and cities can help deliver their business strategies.