For the third year running - and despite Brexit uncertainties - London has topped the annual Dynamic Cities index compiled by Savills Investment Management.The UK capital was ahead of Paris, Cambridge, Berlin and Amsterdam in the top five of an index that ranks the appeal of 130 European cities on their long-term commercial real estate (CRE) investment potential.
How are the cities ranked?
Savills IM analyses and ranks the cities across six categories: inspiration, inclusion, innovation, interconnection, infrastructure and investment.The company said that each city must find a way to leverage its strengths, be it through municipal or cultural institutions; local, regional or international transportation networks; digital infrastructure; or inspiring spaces for innovative start-ups to put down roots.“Dynamic Cities focuses on factors that are essential considerations for CRE investors. These factors underpin cities’ abilities to attract and retain talent, spur innovation and increase productivity, all of which encourages the wealth and population growth that drive successful CRE markets over the long term," commented Andreas Trumpp, head of European research at Savills IM.
London: Kings Cross and the Battersea Power Station redevelopment
This year's index said that in terms of inspiration, London "truly stands out from its European counterparts" and cited redevelopment of areas such as Kings Cross and the Battersea Power Station as highlighting "the role of innovation, creativity and inspiration in London’s resilience as a dynamic city".Hamish Smith, head of UK research and strategy at Savills IM, said: “London tops five of our six categories. When it comes to cities that people are inspired to live and work in, while arts and cultural activities play an important role, London really stands out from its European counterparts with its abundance of parks and cafes, which explain its high score for inspiration. Residents are spoilt for choice of places to meet, work, relax and exchange ideas."But this is just one of many reasons why this world-class city stands in good stead to weather the uncertainties posed by Brexit.“Dynamic Cities focuses on factors that are essential considerations for commercial real estate investors. These factors underpin cities’ abilities to attract and retain talent, spur innovation and increase productivity, all of which are essential for commercial real estate markets over the long term.“A city’s attractiveness for long-term real estate investment is fundamentally linked to whether people are inspired to live, work and play there."
London's deputy mayor: London is the best city in the world
Jules Pipe, London's deputy mayor responsible for planning, regeneration and skills, commented, “London is the best city in the world – creative, diverse and full of opportunity. I’m pleased to see our capital maintain its position as the most dynamic city in Europe for a third year running."Although there is Brexit uncertainty around the capital, London is open for investment and business from around the globe and, whatever the outcome of Brexit, this will never change.”
Why is Cambridge in the top 3?
Cambridge dropped down one place in this year's rankings but Savills IM still ranked the university city as excelling in the inspiration, inclusion and innovation categories, ranking either first or second in each category.With its world-renowned university, Cambridge scores particularly well in terms of cultural and social activities relative to its size, added the report.“Cambridge is a city driven by innovation and the benefits of knowledge spillovers, with its university drawing big science, technology and data firms," said Mr Smith."These and other qualities identified by our Dynamic Cities index mean that it is well-placed to embrace the challenges of today’s world, such as urbanisation and technological change, while also making the city an attractive real estate proposition."Two other UK cities were in the index's the top 20: Oxford in 12th place and Edinburgh in 13th.Dynamic Cities top 10: