Commercial property investment in the world’s leading cities is as much about innovation and business as property prices, according to a new survey.
Cities showing a long-term investment future include San Francisco, London, Shanghai and Dubai, according to the study by international property consultants Jones Lang LaSalle.
The firm says the city momentum index goes beyond economic rankings to highlight the reasons why some cities grow more successfully than others.
Director Jeremy Kelly said: “If a city is growing, it’s down to more than improving GDP. Other factors are at work, like innovation, encouragement of cutting edge businesses, new building, and property prices that move and a willingness to invest both at home and from overseas.
“Our focus is on the reasons why a city is going to be a good place to invest rather than looking at historic economic factors that can say what’s happened in the past.
World’s Top 20 cities
“It’s a fresh way at looking at cities and commercial property investment and we feel more investors and property professionals will look to our way of thinking in the future. Infrastructure, connectivity and innovation should steer investment decisions, even though this radical way of thinking can pose a risk as well as present an opportunity.”
The global top 20 leading cities are listed by the index as:
- San Francisco (USA)
- London (UK)
- Dubai (United Arab Emirates)
- Shanghai (China)
- Wuhan (China)
- New York (USA)
- Austin (USA)
- Hong Kong (China)
- San Jose (USA)
- Singapore
- Shenzhen (China)
- Jakarta (Indonesia)
- Beijing (China)
- Chengdu (China)
- Los Angeles (USA)
- Tianjin (China)
- Boston (USA)
- Seattle (USA)
- Tokyo (Japan)
- Lima (Peru)
Joining the global elite
The index also groups the cities into a number of special categories:
- Elite cities that comprise 25% of global commercial real estate investment activity from 2012-2013. These are Francisco, London, Dubai, New York, Hong Kong, Singapore, Los Angeles and Tokyo
- Technology cities that lead the way in innovation – San Francisco, Austin, San Jose, Boston and Seattle
- Fast-growing cities – Mainly Chinese cities like Shanghai, Wuhan, Shenzhen, Beijing, Chengdu and Tianjin
- Cities gearing up for international events – Tokyo, the venue for the 2020 Olympics and Dubai, hosting Expo 2020
Most surveys provide a static snapshot of city competitiveness, but our unique look reveals the underlying dynamics, adaptability and property market characteristics,” said Kelly.
