Knight Frank’s recently published Global Cities 2018 report offers a glimpse into what could be expected in the year to come. With the global landscape seemingly constantly dodging a crisis, and local prospects appearing uncertain at best, you’d be forgiven for being hesitant to invest. Below, we look at some cities highlighted by the report.
While these may not be the typical locations you’d think of when imagining up-and-coming cities, each offers a distinct opportunity. The key takeaway? Look where the technology is heading, chances are people will follow.
“Pittsburgh has seen more than 70 IT–focused firms headquartered in Silicon Valley and elsewhere open local offices over the past 10 years. Amazon, Apple, Facebook, Google and Uber are among the users that have caused rents and property values to surge. The city’s status as a growing technology hub, and hotbed for AI and autonomous vehicle development is triggering unprecedented revitalisation” says Pamela Lowery, VP of Research Pittsburgh at Newmark Knight Frank.
Jan Paul D. Custodio, Senior Director for Research and Consultancy for Santos Knight Frank explains that Manila lies at the centre for growth in the Philippines’ real estate market: “Opportunities to invest in property development are amplified by the country’s attractive investment grade rating, high GDP growth rate, and strong macro-economic fundamentals.”
An attractive alternative to pricier European markets, Amsterdam offers investors a real opportunity, states the report: “Combined with the strong demand from the city’s vibrant and expanding technology sector, tight [office] supply will drive rental growth, and create opportunities for new development, particularly in central areas.”
This one may not be so overrated after all. Amazon’s presence in the city has made it a beehive of activity for those looking gain access to some of the brightest minds in technology. The report also points out that other companies’ presence is proving the city’s longevity: “ Thanks to Amazon and other titans including Microsoft, Costco, and Boeing, the region has supported and sustained growth through all economic cycles.”
With a bustling IT sector and recent inclusion onto the Smart City list, Bengaluru offers investors an excellent opportunity: “It’s transformed the city’s character, turning the pensioner’s paradise into a bustling cosmopolitan hub. This has stirred up its real estate market, which has become a major global office destination,” explains Vivek Rathi, VP of Research at Knight Frank India.
Sources: Newman Knight Frank, Knight Frank.
Full article available in REIM December/January 2018 Digimag here.