Article

How city characteristics influence real estate investment

Cities share similar traits and face similar challenges, often depending on where they are in their on the evolution curve, their economic size, the specialisms they nurture and the role they play on the global stage.

January 29, 2018

Even in today’s ever globalizing world, no two cities are the same.

Some nevertheless share similar traits and face similar challenges, often depending on where they are in their on the evolution curve, their economic size, the specialisms they nurture and the role they play on the global stage, creating peer groups made up of cities scattered far and wide around the world.

These characteristics defining each group cover many of the big issues facing modern growing cities such as housing affordability, improvements to infrastructure, environmental impact and the use of technology. In addition, factors such as a city’s adaptability, its resilience and its capacity to deliver transformational projects have a role to play. All of these in turn, have a big impact on how real estate investors and businesses perceive a city and its future prospects.

Jeremy Kelly, Director of Global Research programmes at JLL says: “It no longer makes sense to see all cities as being in competition with one another. Instead, cities are finding many different routes to success, creating value along their way that offers an attractive mix of risk and return profiles for investors.

“As locational choices multiply for investors and corporates, it makes greater sense to assess relative economic prospects and real estate market dynamics through the lens of additional city groups that further break down Established World Cities, New World Cities and Emerging World Cities.”

View the slideshow below the find out more about the peer groups of today’s top cities and what it means for their commercial real estate markets.

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