MIPIM 2016: When it comes to which global cities rule the world, most people probably have a list in mind.
There are the usual suspects. London, New York, Shanghai, Singapore. These cities are certainly global leaders. But whether or not they rule the world in the same way they have done in the past is worth considering in more detail.
This is what a panel of experts discussed as part of an Estates Gazette debate, revealing some of the findings of Savills’ 12 Cities report.
“The top capital-rich cities are all very expensive,” said Yolande Barnes, Savills’ director of world research. “The higher you are on the global hierarchy, the more expensive you are. And that is starting to detract from these leading cities. It is happening all over the world.”
She added that not only are major cities like London now competing with “upstart” cities like Berlin and Dublin, but even smaller cities around the world are attracting interest, adding another level of competition.
“What we are seeing in the US is very small cities performing well. Not just the likes of Portland, Denver and Nashville, but even smaller places,” said Barnes. “New York could find itself competing with places like Ithaca, for example. It’s a type of urban dispersal. The future is still urban, it is just about smaller places.”
From an investment point of view, Martin Brühl, managing director at Union Investment Real Estate, added that a focus on the world’s second cities should not be ignored.
“Regional cities in the UK are catching up with London, as are secondary cities around the world. We bought in Boston, Texas, two years ago. We didn’t go to San Francisco because of the cost,” he said.
Panellists also agreed that cities have to change to reflect the needs of the people living in them.
“It is about a different way of working and doing things,” said Barnes. “The quality of the city needs to reflect that. People now have access to everything everywhere. The emphasis now is supremely on people and supporting and attracting them to cities.”
David Lewis, partner at architectural practice NBBJ, said: “The work environments the tech industry has created are now much more commonplace. There is that idea of wellbeing in cities now that has to be upheld.”
On whether he thought financial capital was keeping up with this trend, Lewis said there were plenty of examples of investment into wellbeing, citing Los Angeles, Berlin and Barcelona.
Max Holliday, director of real estate at WPP, said: “When we look at big contracts and investments in particular markets, quality of life and attracting talent are very important to us.
“I think we have been guilty in the UK of creating cities that work very well functionally and financially, but not so well in terms of people. We are looking at cities that work commercially but that work for people as well and are places people want to be.”
The panel:
- Yolande Barnes, director of world research, Savills
- David Lewis, partner, NBBJ
- Max Holliday, director of real estate, WPP
- Martin Bruhl, managing director, Union Investment Real Estates
- Chaired by Damian Wild, editor, Estates Gazette
In partnerhip with:
- Savills
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