Berlin and Dublin are hot on the heels of London for the title of Europe’s ‘Silicon Valley’, according to latest research from Colliers International. Redwood helped Colliers with the European media launch of its report on the health of the tech industry, ‘MTM – European tech cities’.

The report identified Berlin as the biggest threat to London, with five new start-ups created in the German capital every day. Key players in the tech market like Amazon, Microsoft and Zalando continue to be attracted to the Spree-metropolis for its low-cost office and living space, ‘trendy’ image, central location and further simplification of the already attractive immigration policy for skilled workers.

As the economy rebounds, Dublin is set to consolidate its top three position through exposure to large tech players and the data centre industry. With landmark lettings to Facebook, Amazon and Yahoo, the IT sector represented 30 per cent of office take up in 2013. Specifically US tech giants invested over $130 billion into Ireland between 2008 and 2012, almost as much as they invested in all of developing Asia. However, the emerging shortage of ‘quirky’ Grade-A stock, growing rental levels, changes to the US tax regime and the planned increase in Ireland’s corporation tax rate (currently at 12.5 per cent) are likely to impact on Dublin’s pace of growth and competiveness.

Craig Satchwell, Head of EMEA Offices, Colliers International said: “London is still going strong – over 46 per cent of 2013 leases in the West End were for tech and media companies – and ‘Tech City’ continues establish its dominance. However, if London is going to remain at the top, landlords and developers need to urgently address the shortage of central, quality stock and increase provision of flexible and innovative space. Coupled with the fact that Dublin, Berlin and the Nordics are offering businesses young and fresh talent in abundance, London needs to address the increasing skill shortage in the UK to maintain its crown.”