Cities with faster growth in GDP than in the working-age population are “high productivity” markets that may appeal to investors as they rise up the value proposition, according to Cushman, while those with greater growth in labour than GDP are considered “low productivity” markets need to harness that attraction of talent to boost output.
The study concluded that the world’s top-performing cities are located in South East Asia and India, which bodes well for the economic growth and strength of real estate markets in these areas. High productivity cities are located mainly in China. Most cities in Europe and North America – more mature markets – ranked as low productivity or lagging markets for economic and real estate growth and their trajectories need to be assessed accordingly.
Cushman’s analysis, based on more than 137 cities worldwide, examines the seismic shifts in workforces worldwide as 693 million Baby Boomers reach retirement age and 1.3 billion members of Gen Z enter the labour force over the next 10 years.
All stakeholders need to understand the impacts of these trends and how to position themselves to maximise opportunities. The report, entitled “Demographic Shifts: The World in 2030”, looks at the different approaches to work and lifestyle taken by Baby Boomers, Millennials and Gen Z around the world, and the impact on the world’s cities over the next decade as one generation exits the workforce and another enters.
Angus Currie, International Partner, London Markets, Occupier Representation, comments:
“London is hugely appealing for occupiers who need to tap into an extensive and diverse range of talent. It has opportunities for everyone: from dynamic start-ups to mature businesses and everything in-between, across all sectors. It is founded on an established, transparent and well-regulated economic platform.
“London is ahead of the curve when it comes to diversifying and modernising its office offering, positioning itself well for the future. Leading developers have listened to their customers and are blending office, retail and leisure to create ‘destinations’ for future employees, rather than just a place to work. Occupiers have confidence that London will continue to offer them a strategically located hub with access to world-class talent, funding and innovation and the right spaces to support their businesses, in a globally competitive environment.”