The Far East has dominated the latest World’s Top 20 Dynamic Cities list from real estate and investment management firm JLL’s City Momentum Index.
The index ranks countries according to talent attraction, expansion of innovation hubs, and urban planning.
The report indicates a continued shift in global influence, showing a dominance by Far East locations, with Indian, Chinese and Vietnamese cities dominating the top positions.
Despite an economy slump last year, India is leading the index, with four of its cities among the Top 10, and seven in the top 20, including the top two spots for Hyderabad and Bengaluru.
China had five cities in the top 20 dynamic cities list, with Shenzhen highest at number ten, but all of these were bettered by three other far east cities, namely Ho Chi Minh City at number three, Hanoi at number five, and the Philippines capital Manilla at number eight.
However, the Far East didn’t manage a clean sweep.
Cities in the Middle East and North Africa region (MENA) are fast-emerging as dynamic in real estate according to the report, with the North African city of Nairobi claiming fourth spot in the list.
Dubai rose to the 14th position, securing a Top 20 place for the first time in three years. The city is expected to gain more momentum in the index leading up to the Expo 2020 Dubai, which is due to begin on October 20, 2020.
Benefitting from Saudi Arabia’s ‘Vision 2030’ programme of economic reforms, Riyadh has also entered the Top 20 for the first time.
Saudi Arabia’s initiatives to combine better infrastructure and entertainment with tourism expansion regulations aims to contribute towards a positive real estate market.
Riyadh touts an ambitious infrastructure plan, with its metro network – due in 2020-2021 – expected to transform the city’s mobility.
Making up the remaining places in the top 20 was the United States, with techno hub Silicon Valley claiming eleventh spot, while Austin, Texas crept into the top 20 at number nineteen.
As noticeable as the Far East dominance of the latest World’s Top 20 Dynamic Cities list was the complete absence of any European cities. The recent slump seen in Europe is yet to correct, and no European cities were seen to have the imminent infrastructure plans to make the top 20.
The list rankings of talent attraction, expansion of innovation hubs, and urban planning are expected to generate demand in both residential and commercial real estate, and can possibly be used by overseas property investors when planning investment abroad, maximising return by investing in the locations most likely to boom in the near future.
The Far East is certainly looking to be the best destination for investment at the moment.