According to JLL's third annual City Momentum Index, the most dynamic cities are defined by creativity, liveability, and the ability to reinvent themselves (CMI).
London, Silicon Valley, Dublin, Bangalore, and Boston are at the top of the list for successfully attracting cutting-edge new companies, nurturing top talent, leveraging technology, and providing thriving, inclusive communities. doha property
While the 2015 CMI Top 20 featured a number of tech-focused hubs, the 2016 CMI Top 20 included a number of cities that are host to some of the world's most vibrant mixed-use districts, which are flourishing not just in terms of technology but also in terms of their ability to incubate and commercialize new ideas. Connectivity, co-production, and open innovation are promoted in these well-connected city districts, which also include various higher education and research institutions.
"Real estate is a major factor in city momentum because it can encourage growth, innovation, and entrepreneurship while also creating a sense of community for its residents in a sustainable urban model," according to Jeremy Kelly, JLL's director of global research. "Real estate no longer only houses businesses; it now attracts companies and talent, and cities must ensure that their built environment offers the smart, profitable commercial buildings that corporations, money, and talent need."
The following are some of the highlights of the CMI Top 20:
The 'Built World Cities' and their 'Challengers' have a lot of momentum. This year's list includes London (1), New York (7), and Tokyo (14) as well as Shanghai (6), Sydney (8), and Seoul (19), which are collectively vying for global reach and influence. The 'Developed' and 'Challenger' cities' inclusion in the 2016 CMI Top 20 reflects their highly globalized economies, robust infrastructure, and dense concentrations of businesses, wealth, and talent. They're also trying to make radical urban transformations to future-proof their economies.
'New World Cities' in the United States are gaining traction. The Silicon Valley region (2), Boston (5), San Francisco (10), Seattle (13) and Austin (13) are among the CMI Top 20 this year (16). These U.S. cities, which account for a greater share of the CMI than last year, are innovative technology hubs that are proactively using real estate to promote sustainability and liveability.
'Agile Higher-Value Emerging Cities' are being driven by innovation. Some of the world's fastest-growing tech companies are based in Bangalore (4) and Shenzhen (12), and Nairobi (11) is making a concerted effort to step up the value chain and boost global connectivity.
Smaller cities are reaching out to the rest of the world. Dublin (3), Austin (16), and Auckland (20) are relatively smaller cities that are rapidly gaining traction and competing in highly competitive global markets. Despite having some of the smallest populations in the CMI, they are among the most competitive city economies in the world, with global scope achieved without major economies of scale.
The Asia-Pacific region is performing well. Bangalore (4) and Hyderabad (17), both of which are rapidly growing and taking steps to expand their infrastructure and promote high-tech economies, increased India's representation in the Top 20. In terms of creativity, technology, and connectivity, China's cities of Shanghai (6), Beijing (9), Shenzhen (12), and Nanjing (15) are laying the groundwork for new forms of economic operation. Finally, Australasian cities are also gaining traction, with Sydney (8), Melbourne (18), and Auckland (20) all ranking in the Top 20.
The CMI analyzed 37 variables, including recent and expected percentage changes in city GDP, population, corporate headquarters presence, office construction, and office rents. Other considerations included, among others, education facilities, environmental protection, and a city's technological capability.