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Top 30 cities for real estate investment worldwide demonstrate strength of “super cities” and growth of second-tier cities
As business and political leaders convene to discuss global challenges at the World Economic Forum annual meeting in Davos, Switzerland, there is a greater appreciation for the importance of real estate in reshaping cities and, therefore, the world’s commercial geography. According to research by Jones Lang LaSalle (NYSE: JLL), with real estate investment levels reaching a new high of an estimated ten dollars chasing each dollar of prime assets, real estate is no longer considered a consequence of city success, but is now actively employed to drive it. A look at the 30 cities worldwide where 50 percent of the US$4.6 trillion in direct commercial real estate investments has been concentrated over the past decade highlights real estate’s impact on the strength of super and primary cities and the growth of second-tier cities. According to Colin Dyer, CEO of Jones Lang LaSalle: “Investors are allocating more capital to real estate today but focusing on a specific set of cities globally. This has created an increase in demand for the limited stock of prime properties in super cities, the world’s most attractive real estate markets. As a result, investors are moving along the risk curve into second-tier markets, which are becoming more conscious of how real estate can make them more attractive to investors. The most successful markets share characteristics like transparency, good governance, strong education systems and innovative city planning. The ‘push-pull’ effect is strengthening super cities and boosting investment prospects for second-tier cities.”Recent research from Jones Lang LaSalle identifies the connections between cities of different sizes and rankings and how the investment market responds to the underlying momentum that each is creating. These newly revealed patterns and perspectives on performance bring more attention to the need for cities to consider real estate as a core performance driver.
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management. For further information, visit www.jll.com.
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