Savills Investment Management (Savills IM) has identified London, Paris, Cambridge, Amsterdam and Berlin as the top 5 ‘dynamic cities’ in Europe. The Dynamic Cities index highlights European cities with sound fundamentals, including strong economic growth, wealth, technology and population trends, which are well placed to take advantage of trends such as urbanisation, the developing knowledge economy and technological change.
Using 60 indicators across 6 subcategories (Innovation, Inspiration, Inclusion, Interconnection, Investment and Infrastructure), Dynamic Cities analyses and ranks 130 European cities. The index provides a score for each city out of 100, with the overall score encompassing the balance of performance across all subcategories.
The report concludes that London’s position atop the index comes down to its range of knowledge-based industries, infrastructure investment, population growth forecasts and diversified workforce, and predicts that London will remain the pre-eminent European city despite short-term turbulence because of Brexit.
Northern European cities dominate the top 10, with Munich (6th), Dublin (7th), Stockholm (8th), Edinburgh (9th) and Zurich (10th) completing the list. Madrid (11th) was the highest-ranked Southern European city, while Barcelona (17th), Rome (32nd), Milan (34th) and Istanbul (39th) also featuring in the top 40.
The top performing Dynamic Cities have ambitious infrastructure investment projects, fast-growing knowledge networks, high-quality universities, innovative businesses drawing from a global talent pool and strong cultural amenities to help retain that talent. Savills IM Dynamic Cities predicts that all commercial real estate sectors will benefit from these characteristics over the long run, with rising employment helping support the office sector; wealth creation benefitting consumer expenditure and the retail sector; and the explosive growth in e-commerce and last-mile delivery driving demand in the industrial sector demand through urban logistics and warehouse facilities.
Europe’s most dynamic cities are future-proofing themselves by creating environments that encourage the growth of a ‘knowledge economy,’ which will increasingly drive wealth creation. The report shows that size isn’t everything: while some ‘supercities’ such as London and Paris are consolidating their already dominant positions, smaller cities such as Cambridge, Edinburgh, Dublin and Stockholm are well positioned to grow in influence over the coming years and are likely to become increasingly attractive locations for property investment.
Top 10 dynamic cities in Europe ;
Source: Savills IM