Publications

- April 1, 2018: Vol. 12, Number 4

To read this full article you need to be subscribed to Institutional Real Estate Europe

Are global gateway cities worth the hype?

by

MSCI has claimed that the office sectors of global gateway cities have not offered superior and safer investments to justify their premium pricing.

In a report called Global Gateway Cities: The Performance Behind the Hype, MSCI says that gateway cities “did not provide superior unadjusted returns over the decade ending 2016, based on annualized total returns”.

From 2007 to 2016, 10-year annualized total returns for standing office investments in the global gateway cities of London, Paris, New York City and Tokyo all underperformed “regional gateway cities” such as Toronto, Sydney, San Francisco and Seoul, and “nationally significant cities” including Johannesburg, Stockholm, Taipei and Oslo. They also underperformed Adelaide, Austin, Canberra, Lyon, Marseille and Vancouver, which are in smaller, more secondary markets.

Top 10 cities on a 10-year annualized total return ranking from 2007 to 2016 f

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.