JLL’s analysis looks beyond the standard metrics of city performance to recognise similarities among the world’s cities. The new classification of 10 global city groups, each with their own common paths, challenges and imperatives, draws on a wide range of indicators to develop a focused global map of city dynamics.
Central and Eastern European capitals such as Budapest, Bucharest, Prague and Warsaw are classified as hybrid cities by JLL. They have made good progress improving real estate transparency and have seen a transformation in the quality of their commercial real estate
Among the new city types, Innovators with world-class capabilities in science and technology have seen investment volumes grow by 50% since 2006. In particular, Berlin emerged as a hotspot for cross-border investment, ranking as one of the top global destinations for cross-border capital. Meanwhile, Lifestyle cities like Vancouver, which saw investment volumes rise by 168% in 2017, will continue to attract global investment capital.
Jeremy Kelly, Director in Global Research at JLL said: “Increasingly, groups of cities share characteristics, aspirations and priorities in terms of the specialisms that they nurture, the talent and businesses that they attract, and the style and quantity of real estate required. With this in mind, it makes sense to assess a city’s real estate market dynamics through the lens of these city groups, to complement more traditional approaches to evaluating the impact of city competitiveness on real estate.”
The Big Seven and the Contenders
Innovators, Lifestyle and Influencers
Megahubs, Enterprisers and Powerhouses
Hybrids and National Growth Engines
Dr. Tim Moonen, Director of Intelligence at The Business of Cities added: “All global cities are on a journey within or between different types – their paths are guided by new infrastructure, changing sector mix, new national policies and even by the way they are governed and led. The shifting competitive horizons of different types of cities bring new opportunities and fresh challenges for the real estate industry. This typology represents a snapshot in time and as cities adjust and evolve we can anticipate the dynamics of the global urban system to change with them.”
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