Oxstones Investment Club™A new report by Jones Lang LaSalle reveals that more than half of all global real estate investment resides in 30 cities, and that the world’s 10 fastest growing large cities are all in China.
The report, A New World of Cities – Redefining the Real Estate Investment Map points out that 50 percent of real estate investment is concentrated in 30 cities around the world. Among these centres, London and Paris continue to rank in top five cities for real estate investment, however, the top ten cities include five from Asia, up from two in 2004, with China increasing its weight through 2020.
The report projects that by 2020, the top 30 cities will become the top 50 as digital communications enable corporations to locate outside traditional hubs.
In a statement about the report, Peter Roberts, CEO, Americas, Jones Lang LaSalle said, “In the BRIC countries, Grade A office stock is projected to grow by 10 percent per year over the next decade. Of these, China has the greatest opportunities with the world’s 10 fastest growing new cities in terms of GDP – Chongqing, Tianjin and Chengdu topping the list.”
Jones Lang LaSalle has defined 50 secondary and tertiary cities in China that will account for 12 percent of global economic growth in the next decade. “Back in 2004, Tokyo and Hong Kong were the only Asian cities in the top 10 cities for real estate investment,” said Roberts. “Last year, however, we saw Tokyo, Hong Kong, Singapore, Shanghai and Seoul make the list.”
“We are already seeing a shift in where real estate investors are sending their capital,” said Peter Roberts, CEO, Americas, Jones Lang LaSalle. “The top 30 cities for real estate investment will become the top 50 as investors diversify their portfolios and corporate occupiers expand their geographic footprints to include emerging cities. Advances in digital communications contribute to this expansion because companies will no longer have to physically cluster in some of the world’s largest cities.”
JLL Report Says China has 10 Fastest Growing Cities in the World
Tags: 10 fastest growing large cities, A New World of Cities – Redefining the Real Estate Investment Map, China, digital communication, diversify portfolio, global real estate investment, Hong Kong, investors, Jones Lang LaSalle, London, paris, Peter Roberts, Seoul, shanghai, singapore, Tokyo