As the economies are expanding, the countries are opening their doors to the new gamut of opportunities. For global investors and international corporations, real estate activities are taking place at a rapid pace. Here’s a list of 5 cities that are witnessing an enormous change.
These cities are among the list of cities where nearly three-quarters of global direct commercial real estate investment is taking place and are home to 90 per cent of the world’s prime office spaces. While cities like New York, Tokyo, London and Paris, have already created a name for themselves, aforementioned cities are few emerging destinations.
With the fastest-growing economy and population of any major city in Europe, Istanbul is building its position and status as one of the continent’s four anchor megacities (together with London, Paris and Moscow). This is reflected in its increasing importance as a transport hub, with the number of air passengers to the city almost doubling over the past five years to over 80 million. The city is investing in infrastructure with new metro lines, a third bridge over the Bosphorus and a third airport under construction. The city’s Grade A office stock is set to grow by 57 percent over the next three years.
The economic capital of Africa’s largest economy, Lagos also has the fastest-growing population of any major city, with its population expected to nearly double over the next 15 years. Lagos is emerging as a regional hub for multinational corporations seeking to enter the African market and is building infrastructure to match its ambitions, including projects such as Eko Atlantic City, a new district being built on 10 million square metres of land reclaimed from the Atlantic Ocean.
The Eurozone’s second-largest city economy is at the forefront of the region’s recovery, with both GDP and employment increasing at their fastest rate in seven years. This is feeding through into renewed momentum in Madrid’s real estate market, with direct real estate investment volumes increasing by 129 percent over the last year to stand at their highest level since 2008. Office rents are bouncing back robustly, with the market expected to be among Europe’s strongest performers in 2016.
Economic and employment growth are gaining momentum in Italy’s economic hub as it continues to outpace the rest of the country, while real estate investment volumes are at their highest level since the Global Financial Crisis. The 2015 Milan Expo has focused attention on its status as a global centre for innovation and its shifting emphasis towards high-value activity. An example is the Nuova Bovisa development, which is set to bring together higher education institutions and industry to focus on energy and sustainable mobility research in the city, and is just one of a range of major developments ongoing in Milan, including CityLife, the new Porta Nuova business district and the multi-billion dollar Milanosesto project.
The commercial capital of the world’s fastest-growing major economy, with growth exceeding 7 per cent in the city over each of the last three years. Reforms being undertaken by the national government are boosting confidence in the national and metro area economy. Construction levels are high, with Mumbai increasing its Grade A stock by 26 per cent over the past three years, and are expected to add an additional 22 per cent over the next three years. Mumbai is enhancing its position as a hub for global corporations, with firms among the world’s 2,000 largest companies headquartered in the city rising by 50 per cent over the last 10 years.