Beyond the established gateway cities ... ( cont ’ d )
GLOBAL TOP 20
Total Real Estate Investment as a Proportion of City GDP
1 . London 2 . Munich 3 . Sydney 4 . Oslo 5 . Honolulu 6 . Auckland 7 . Frankfurt 8 . Copenhagen 9 . Stockholm 10 . San Jose 11 . San Francisco 12 . Austin 13 . Melbourne 14 . Dublin 15 . Paris 16 . Gothenburg 17 . New York 18 . Boston 19 . Brisbane 20 . Warsaw
Source : JLL Investment Intensity Index – Global Top 20 , September 2015
These categories of cities are not static or mutually exclusive . Some cities are “ Hybrids ,” like Dubai , Shenzhen , Bangalore , Buenos Aires , and Santiago , which have many of the characteristics of ‘ Emerging World Cities ,’ but are displaying the agility and value-creation of ‘ New World Cities ’ and as a result are cities to watch . Singapore , Berlin , and Toronto have the characteristics of being both Established World Cities and New World Cities . Seoul and Moscow are both Emerging World Cities and have many of the features of Established World Cities .
Global cities in the future : The real estate perspective While the “ Big Six ” Established World Cities account for more than one-fifth of total global real estate investment activity , they will need to execute bold urban transformation plans to support the shift to new modes of economic activity and to ensure the efficient recycling of land .
“ The new economic and technological order offers cities the opportunity for re-invention , for the creation of a new economic and social dynamism , and improved quality of life ,” concluded Rosemary Feenan , director of Global Research Programmes at JLL . “ This new set of city clusters is carefully assessing how to capture and leverage those opportunities in ways that are consistent with their vision and with the realities of what is realistically deliverable . The result is that cities are redefining urban strategies and taking clear positions on the policies required to achieve their visions and style objectives .”
Emerging World Cities like Shanghai , Mexico City , and Istanbul are witnessing massive expansion through the construction of impressive mixed-use schemes and trophy developments . But as these cities move to the next phase in their evolution , the real estate sector will play a more pivotal role in creating a “ sense of place ’’ and contributing to city identity , uniqueness , and well-being . As these are some of the world ’ s most environmentally challenged cities , real estate will be a key driver of more sustainable urban models . Improvements in real estate transparency also need to progress at much greater speed , not only to attract new capital , but to enhance the business operating environment and contribute to the quality of life of its citizens .
New World Cities are the home of many millennials , a demographic that demands less conventional real estate and has a preference for characterful properties and locations in vibrant mixed-use neighbourhoods . Real estate will play a particularly crucial role in building alliances between businesses , universities , and civil society . ‘ New World Cities ’ are proving to be particularly attractive for real estate investors who are , either implicitly or explicitly , taking into consideration issues of livability , sustainability , and technological prowess in their strategic decisionmaking .
Excerpted from Globalisation and Competition : The New World of Cities , a report by JLL in conjunction with The Business of Cities . page 8 | INDUSTRY UPDATE