The Index uses a number of factors to identify the most economically vibrant cities across the world such as Population aged 15 and over, Median disposable income, University ranking, Retail sales and Productivity. Cities are then ranked in the Index to provide a view of where some of the biggest global real estate opportunities lie. Around 160 cities form the full Index, explore the top 30 below.
The Schroders Global Cities Index is a ranking of the strongest city economies around the world
The scale of a city’s population reflects the potential demand for goods and services. Businesses are attracted to this opportunity. The Index measures the total population aged 15 and over as this cohort is more likely to earn and spend money. Scale can also create production efficiencies and therefore higher economic growth.
This factor represents goods sold to the public for household consumption and includes internet sales in a city where the primary business is retail. Retail sales contribute to economic growth and employment in a city.
Median household income is an indicator of affluence and therefore ability to pay rent and acquire real estate. This demand measure is positively correlated to real estate rents in some sectors.
GDP represents the economic output of a city. It is measured as the sum of the final uses of goods and services in purchaser prices, less the value of imported goods and services. The more productive a city, the greater demand for real estate.
High quality educational institutions promote innovation and generate jobs in a city. Skilled graduates entering the local workforce attract corporations and may launch their own businesses. The resulting wages and wealth generation fuel real estate demand.
Both the current value and projected growth of each factor is considered. The resulting rankings guide the Schroder Global Cities team’s investment process. Once the most economically vibrant cities are identified by the Index, further work on local real estate supply/demand dynamics and company specifics is undertaken.
Around 160 cities make up the full Index. Here's a snapshot of some of the top cities: