India has taken over from China as home to the world’s most dynamic cities, according to JLL’s fourth annual City Momentum Index 2017.
Six Indian cities rank in the CMI Global Top 30, with the country’s primary technology hub,
Bangalore, moving into the top spot for the first time.
The Indian Tier II cities of Hyderabad and Pune are in 5th and 13th positions, respectively. India’s Tier I megacities of Chennai (18th), Delhi (23rd) and Mumbai (25th ) also feature in the Global Top 30, although their rankings are compromised by poor scores on environmental sustainability.
The index featured three Chinese Tier I cities including Shanghai (4th), Beijing (15th) and Shenzhen (23rd), as well as the Yangtze River Delta cities of Hangzhou (26th) and Nanjing (29th). These five cities have been among the most successful in transitioning to higher-value activities. Shanghai is fast-tracking to maturity and is set to join the top table of global gateway cities within the next few years. Shenzhen is cementing its position as a global hub for hardware manufacturing as well as a regional financial center.
Notable Asia Pacific cities missing from the CMI Global Top 30 include Tokyo, Seoul, Singapore and Hong Kong.
Technology and innovation continue to be a major driver of momentum, from Silicon Valley to Nairobi’s Silicon Savannah. Technology largely explains the substantial presence of U.S. cities in the Global Top 30. Tech-rich New World Cities — Silicon Valley (3rd), Austin (7th), Boston (9th), Seattle (20th), San Francisco (21st) and Raleigh-Durham (24th ) — have among the world’s highest concentrations of technology companies.
Bangalore leads as the number one IT hub. The city has attracted a range of the world’s leading technology firms, as well as nurturing successful start-ups. This is driving strong real estate demand which, backed by exceptional levels of growth, has propelled Bangalore to the top of the Index. However, the city faces challenges to maintain its momentum that include infrastructure deficits, lack of planning oversight and environmental degradation.
Four European cities sit in the Global Top 30. London has fallen from the top spot (a position it has held for the past two years). Nonetheless, it holds a respectable 6th position globally. Paris appears in the top group for the first time in the 17th position, due to its long-term attributes as well as a notable improvement in real estate momentum. Dublin (28th) and Stockholm (30th) round off the Global Top 30 representation from Europe.
Middle Eastern and African cities have struggled to maintain momentum, with many hit by the slump in energy and commodity prices. The notable exception is Dubai (11th), which has reappeared in the Global Top 30, after having fallen outside the leading group in the last couple of years. Nairobi (10th) is the star performer in Africa by a significant margin, making its second consecutive appearance in the Global Top 30.
