London has topped the list of cities in Europe for real estate investment, with Dublin and Paris occupying the second and third spots respectively, and Istanbul entering the top 12 for the first time.
According to the real estate company, JLL’s latest City Momentum Index report, these top cities boast long held strengths in technology, deep talent pools and ambitious urban development plans.
London has ranked at top in global top 20 for the second year in a row as the robust economic growth and commercial real estate fundamentals are backed by measures which are transforming the city’s transport and infrastructure as the consequence of its unique position of global education and technology hub.
The UK’s £15.46 billion Crossrail project is the largest transport scheme in Europe and new university campuses such as in Imperial College London in White City are creating new business-education networks. The campus is worth £1.05 billion and is planned as London’s first major research quarter.
The report points that a weak national growth has affected the short-term momentum in Paris; although it is increasing, it is just outside the top 20 globally. The city’s scores are high for education and innovation, the two long term indicators, and it receives the largest number of patent applications. It also boasts Europe’s largest high-tech workforce.
Moreover, the city will be set for a strong future momentum powered by its ambitious Grand Paris project. The project is aimed at adding 200 kilometres of new metro line to the city’s existing network and boost connectivity across the city. This mega project will create new real estate opportunities and place Paris centrally for future growth.
One of the most dynamic cities is going to be Istanbul which is expected to see the fastest economic growth for any city in Europe over the next three years. The city’s momentum will be sustained by its development of long term indicators.
Connectivity across the city will be enhanced by its new metro lines, a third bridge over the Bosphorus and a third airport among other transformational and infrastructural projects stated over the next few years. The city is also set to advance its status as a regional financial services centre which will expand its Grade A office stock by almost 60% over the next three years.
The current European index is dominated by what are called Europe’s New World Cities and include cities such as Dublin (second), Randstad in The Netherlands (fourth), Munich (fifth), Stockholm (sixth), Copenhagen (seventh), Berlin (eleventh) and Barcelona twelfth).
The report cites that the smaller cities are innovation-oriented and combine strong infrastructure platforms, high quality of life and resilience against changing economic conditions.
Cities in the UK have maintained their position in the list, with cities like Manchester holding the ninth and Edinburgh, tenth position. The success of these cities is grounded in their sound economic fundamentals and these two cities will be more competitive as a result of the devolution measures.
Elsewhere; Madrid, Vienna and Brussels showed greatest improvement globally in their CMI score compared with the previous year.
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