HEADING NORTH – CITY RANKING AND POTENTIAL
Our city ranking analysis highlights two things: first, that rent levels and growth are dependent on cities achieving – and then maintaining or growing – their competitive edge against other global cities. Currently, New York and London dominate the ranking of our core 12 cities, Dubai and Singapore are rising, while Hong Kong and Moscow have moved down the rankings.
Second, small cities such as San Francisco, Berlin and Dublin are climbing the ranks and becoming more competitive, as well as costing less in rent than the larger global cities’ average. These compass points show the way for investors; countries that rank higher on accommodation costs than on city quality and competitiveness (Hong Kong, Dubai and Moscow) are likely to experience less rental growth in future than those that rank lower. Meanwhile, the highest rental growth is likely to be seen in the cheapest real estate rental markets that have the highest potential for growth and development as global cities. Both Berlin and Dublin stand out in this regard.