Los Angeles is the global hot spot for property investors, claims a new report.
LA was one of 18 US cities that dominated the annual Schroders Global Cities 30 Index.
Outside of the US, London snatched second place after taking the top spot last year.
Boston was third, Chicago fourth and New York fifth.
Los Angeles soared from sixth last year to first, while Boston moved up from 24th to third place.
Chicago jumped from 10th to fourth and New York stayed anchored in fifth.
Schroders Hugo Machin said: “The index continues to evolve, as new factors and their weightings are assessed. This is critical to ensure the best city economies are identified. It is these strong city economies that have the potential to provide superior investment returns.
Universities are key to powering cities
“It is no surprise that the cities that have benefitted from the inclusion of the university rank are on the West Coast of the US. Universities are critical in powering city economies. Innovation and education provide a better trained, more productive workforce. Knowledge based hubs are growing in economic strength with a positive knock-on to real estate markets in those locations.”
Machin explained that good universities also pulled up the investment prospects of cities outside the US as well.
“Chinese cities still rank extremely well with Shanghai and Beijing in the top 10. Shenzen, despite emerging as a knowledge base economy, does not have the tertiary education that ranks as highly as the two more established Chinese cities,” he said.
“London has moved up to second place. We maintain that London has a competitive advantage in location, language, scale, infrastructure and cultural diversity. If we add the global strength of its universities, London remains a favoured place to invest.”
Top 30 Global Cities For Investment 2017
| Ranking | Location | Country |
|---|---|---|
| 1 | Los Angeles | United States |
| 2 | London | United Kingdom |
| 3 | Boston | United States |
| 4 | Chicago | United States |
| 5 | New York | United States |
| 6 | Hong Kong | Hong Kong |
| 7 | Houston | United States |
| 8 | Melbourne | Australia |
| 9 | Singapore | Singapore |
| 10 | Shanghai | China |
| 11 | Beijing | China |
| 12 | San Francisco | United States |
| 13 | Seattle | United States |
| 14 | Sydney | Australia |
| 15 | San Jose | United States |
| 16 | Paris | Europe |
| 17 | Atlanta | United States |
| 18 | Toronto | Canada |
| 19 | Washington | United States |
| 20 | Dallas | United States |
| 21 | Tokyo | Japan |
| 22 | Brisbane | Australia |
| 23 | San Diego | United States |
| 24 | Shenzhen | China |
| 25 | Philadelphia | United States |
| 26 | Baltimore | United States |
| 27 | Miami | United States |
| 28 | Mexico City | Mexico |
| 29 | Minneapolis | United States |
| 30 | São Paulo | Brazil |
Source: Schroders
