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What to look for when investing in global cities
Hugo Machin, Co-Head of Global Real Estate Solutions, explains what makes a successful global city investment and why London is so highly rated.
Global Cities are important because the United Nations (UN) is predicting by 2035 that 70%, or 9 billion people, will live in cities.
Cities are critical in terms of knowledge transfer. They are where the "gig" economy, or the knowledge economy, is currently living. And they are very different to the post-industrial and the post-manufacturing cities.
What you’re looking for are the cities that are thriving because of transport, because of infrastructure, and because of all these policies that are in place.
On the other side of the equation you have got cities out there that are in terminal decline as the industries have been depleted by the automation in manufacturing.
Why London remains highly rated
In the recent Schroders Global Cities Index update London came in very strongly, at number two.
The reason for this is because it screens very well on a number of key metrics that we have in terms of how we rank cities.
Take London for instance. Its scale, GPD growth, the quality of universities, its cultural offering and very broad-based economy, make it one of those key cities that, despite all the political issues going on at the current time, we see it as key place for future investment.