News releases

Los Angeles claims top spot in Schroders Global Cities 30 index

26/06/2017

Los Angeles has been named as the top global city in the third publication of the Schroders Global Cities 30 index, narrowly beating London which took second place.

US mega-cities dominated the latest index taking 16 of the top 30 places, including four of the top five spots. Los Angeles jumped from sixth place to first, whilst Boston saw one of the biggest leaps in the index going from 24th place to third place. Chicago jumped from 10th place to fourth, whilst New York, the most populous city in the United States, held onto its fifth place ranking. 

The Schroders Global Cities 30 index is compiled on a range of factors, including the projected growth of the economy, disposable incomes over the next decade and the size of the population. The latest version of the index includes an additional new factor which looks at university ranks, which was the main driver of whether a city moved up or down in its ranking.

Having previously dominated the index, the Chinese mega cities saw some of the biggest falls. Beijing, which took the top spot in December fell to 11th place, whilst Shanghai fell from second to 10th and Shenzhen dropped from third to 24th place. 

London was the top ranked European city climbing six places to claim second place in the latest index. Paris, which was the only other European city to feature in the index, fell from 12th place to 16th.

Hugo Machin, co-Head of Global Real Estate Securities, said:

“The Schroders Global Cities index continues to evolve, as new factors and their weightings are assessed. This is critical to ensure the best City economies are identified. It is these strong City economies that  have the potential to provide superior investment returns.

"It is no surprise that the cities that have benefitted from the inclusion of the university rank are on the West Coast of the US. Universities are critical in powering city economies. Innovation and education provide a better trained, more productive workforce. Knowledge based hubs are growing in economic strength with a positive knock-on to real estate markets in those locations.

"Los Angeles has moved up the rankings to take the top spot . The scale and economic depth of LA makes it a compelling location to work and live. One of the key strengths of LA’s economy is that it is well diversified across multiple industries including financial services, media, trade and technology. The technology sector, in particular, has grown substantially over the past few years, and this has not only boosted demand for office space but also for residential property, much of it due to the increased hiring of millennials.

"Chinese cities still rank extremely well with Shanghai and Beijing in the top 10. Shenzen, despite emerging as a knowledge base economy, does not have the tertiary education that ranks as highly as the two more established Chinese cities.

"London has moved up to second place. We maintain that London has a competitive advantage in location, language, scale, infrastructure and cultural diversity. If we add the global strength of its universities, London remains a favoured place to invest.”

The global cities team has launched the Global Cities blog which acts as a resource on the longer term trends impacting global real estate. For further reading please visit http://www.schroders.com/en/schrodersglobalcities/

Top 30 Global Cities

Location

Country

Ranking

Los Angeles

United States

1

London

United Kingdom

2

Boston

United States

3

Chicago

United States

4

New York

United States

5

Hong Kong

Hong Kong

6

Houston

United States

7

Melbourne

Australia

8

Singapore

Singapore

9

Shanghai

China

10

Beijing

China

11

San Francisco

United States

12

Seattle

United States

13

Sydney

Australia

14

San Jose

United States

15

Paris

Europe

16

Atlanta

United States

17

Toronto

Canada

18

Washington

United States

19

Dallas

United States

20

Tokyo

Japan

21

Brisbane

Australia

22

San Diego

United States

23

Shenzhen

China

24

Philadelphia

United States

25

Baltimore

United States

26

Miami

United States

27

Mexico City

Mexico

28

Minneapolis

United States

29

São Paulo

Brazil

30

Source: Schroders and Oxford Economics, as at November 2016

 

For further information, please contact:

Charlotte Banks, UK Intermediary – Tel: +44 (0)20 7658 2589/ charlotte.banks@schroders.com

The Schroders Global Cities 30 index

The Schroders Global Cities 30 index assesses and ranks the growth and future prospects of 161 global cities and was first published in August 2016. 

The top ranked cities share common factors such as top universities, excellent infrastructure and pools of high-skilled workers. They also tend to be economically diverse and are highly attractive places to live due to diverse cultural and leisure activities.

The data informing the index constantly changes as it is updated with fresh information, new forecasts and new data sets.