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Investors turn toward broader set of issues in cities for investment decisions
Research - SEPTEMBER 23, 2019

Investors turn toward broader set of issues in cities for investment decisions

by Andrea Zander

As concerns about geopolitics, demographics and climate change rise, the attention of citizens, businesses, investors and policymakers is turning toward the broader set of issues that cities face, according to JLL’s Demand and Disruption in Global Cities 2019 report.

Investors have to pay attention not only to economic fundamentals but also to aspects of quality, innovation, sustainability, place and promotion performance across longer timescales, adding layers of complexity to their investment decisions.

“The Big Seven” cities that continue to have the most consistent performance across key global city criteria include London, New York City, Paris, Singapore and Tokyo, which retain their positions in the ranking. The final two, Hong Kong and Seoul, have switched places since 2017.

London continues to lead the pack despite a recent slowdown in momentum and increasing risks of losing some important functions to other European competitors due to Brexit. The U.K. capital continues to record excellent performance as a result of its diversification into fintech, robotics, medtech and retailtech, and its ongoing cycle of infrastructure investment and redevelopment.

Seoul maintains its progress regardless of its largely domestic corporate base, investment market and labor force. The winner of the latest World City Prize has become a leader and exporter in urban solutions around transport interchanges, high-quality redevelopment, citizen participation and digital services.

Meanwhile, Hong Kong’s infrastructure advantage has been slightly eroded by slow progress in adopting and unifying data technologies. The city’s innovation culture is still maturing, and political uncertainty is impacting on sentiment in some quarters.

Paris is benefiting from a positive cycle of policies that foster the ingredients for innovation — especially talent and business climate. The Grand Paris project is catalyzing the development of several new nodes and the formation of a polycentric metropolis, while the city is also starting to lead the way in terms of circular economy adoption.

 

To read the full report, click here.

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