Which Indian Cities Feature In The World Order In 2018?
Which Indian Cities Feature In The World Order In 2018?
Delhi, Mumbai emerge as Mega Hubs Emerging World Cities
Bangalore is India’s Enterprisers market says World Cities survey
The Big Seven remain unchanged to include 4 Asian Cities
Cities category, Delhi and Mumbai are deemed Megahubs while Bangalore is high Enterprisers city.
The annual global survey is published in conjunction with The Business of Cities. The report maps top business destinations across the world categorizing them into various groups to understand the investor and development sentiments and potential for business growth to evaluate their strengths and opportunities for the real estate investors, developers and corporate occupiers. Over 80 cities globally are considered for evaluation for this report and slotted into four categories and ten subcategories.
“While we have seen Indian cities performing better on global platforms, our cities are still far behind when compared to the elite 7 or the contending cities, signalling a much-needed shift towards higher productivity and transparency. In order to get there, we must concentrate firstly on further improvements in technical and higher education to increase the number of job-ready graduates and secondly, overcoming the issue of the sub-optimal use of land in the central areas of major business districts that have the potential to become growth hubs. The reduction of the informal economy, tackling unsustainable patterns of sprawl and retrofitting of resilient infrastructure is also important to maintain a strong growth profile that will further push our cities towards the top global order,” says Ramesh Nair, CEO & Country Head, JLL India
Mumbai emerged as a Megahub amongst the Emerging cities. It is recognised as a city in an emerging economy being the junctions for internationalisation of national economies and capable centres of business and retail. Mumbai has been a gateway city for most international corporations to set up their shop. The strong presence of global BFSI, retail as well as Institutional investment companies. The capital of Maharashtra has an estimated GDP of $310 billion and has the presence of 28 billionaires.
Mumbai office market has seen a growth in supply and absorption and today has the highest volume of Grade A office space estimated at approximately 111 million square feet (msf) with a total vacancy of approximately 16%. The market has seen the steady momentum of leasing over the last few quarters.
The city is further made attractive to the occupiers as the city has held its rents steady with softening bias, keeping the interest for the cities high. From an investment perspective, Mumbai has been India’s top destination for private equity investments with the market attracting nearly US$ 10 Bn in the period 2014 – 17
New Delhi was also featured as a Megahub along with Mumbai, as the city remains an influential office as well as an investment destination. Delhi has seen a growth in building and construction taking the current grade A stock of office supplies to over 100 msf, however, the city has a moderately high vacancy at 30% mostly on account of futuristic developments. The investment market has been strong too with Private Equity investments being over US$ 8 Bn in the period of 2014 – 17.
Bengaluru was recorded as an Enterprisers city. Enterprisers are home to some of the world’s most dynamic real estate markets. These emerging economies possess rapidly evolving innovation systems and increasingly are home to their own successful, home-grown multi-national corporates. Bangalore has an estimated GDP of $110 billion and is India’s deemed IT Hub.
A very busy office transaction market, Bangalore sees the highest volume of net absorption year – on – year. Of recent, the city has been facing a challenge of low construction momentum which has significantly brought down vacancy in the city to a mere 3% over a Grade A office stock of approximately 107 msf.
“Indian government’s effort to open up the economy to attract foreign companies and capital into India has been seeing a strong positive response. These top three cities have been the hotbed of commercial activities and have a positive growth outlook as indicated by the fact that over 70% of the total investments through PE have been in these three cities. However, for Indian cities to reach the top position, some high weightage factors like investment, financial and business activities, and infrastructure should be improved to favourably impact global economic indices like GDP per capita, economic growth rates, industrial structure etc. and rise in global ranking,” added Ramesh Nair, CEO & Country Head, JLL India.
Definition of Megahubs, Enterprisers
- Large cities in emerging economies, Megahubs, are junctions for internationalisation of national economies and capable centres of business and retail but fail to punch above their weight as investment destinations.
- Enterprisers are home to some of the world’s most dynamic real estate markets. These emerging economies possess rapidly evolving innovation systems and increasingly are home to their own successful, home-grown multi-national corporates.
- The typology is informed by over 300 global indices and benchmarks that assess the relative performance of cities including finance and business activity, investment profile, demographic diversity, innovation, infrastructure, global reach, quality of life, culture, governance and institutional framework. Other factors include core analysis of city size, GDP per capita, growth rates, industrial structure, position within the national and continental ‘system’ of cities and in-depth experience working with hundreds of city governments and leadership teams in the development of city and metropolitan strategies. To learn more about cities and real estate, visit jll.com/cities-research
No comments:
Post a Comment