German metropolises don’t quite play in the same league as the “Big Seven,” these being London, New York, Paris, Hong Kong, Tokyo, Singapore and Seoul. That said, the latest JLL survey “Demand and Disruption in Global Cities” suggests that Munich and Berlin count among the expanded circle of the so-called established world cities and thus among the 20 best destinations for real estate investments worldwide (source: www.us.jll.com). Another German city that could emerge as one of the new world cities in a future cycle is Stuttgart (source: www.haufe.de).
The survey studies major cities around the globe with respect to more than 500 benchmarks, including infrastructure, economic growth, labour market and liveability, among others. The survey, which is updated periodically, lists Berlin and Munich for the first time among the new global contenders that could close ranks with the “Big Seven.” In the ranking of most attractive cities, Berlin placed 14th and Munich 17th.
Berlin is highlighted specifically for its innovative strength and for its appeal to young talent from all over the world. The survey labels the German capital “Europe’s continental tech hub” and expressly commends the city for the strength of its e-commerce and fintech sectors as well as for its efforts in the areas of artificial intelligence and blockchain. It goes on to say that Berlin’s office market is exceptionally tight because of strong demand, and that the city has become a favoured destination for cross-border capital. The growth of domestic and international businesses is considered particularly important for the future appeal of the city for real estate investors.
According to the survey, Munich is Germany’s leading centre for advanced technology and the insurance industry. The survey highlights the fact the Microsoft picked the Bavarian state capital as site for its new German headquarters. The new high-speed rail connection to Berlin and the expansion of the public transportation network are likely to support the continued growth of the city’s commercial and residential markets, according to JLL. The survey concludes that an increasing number of international investors are taking note of Munich.
Stuttgart is described as a prosperous and efficient city whose high score is based most notably on its infrastructure system, which is barely outside the global top 25. Its high level of productivity makes the state capital of Baden-Württemberg a contender for the circle of new world cities. The survey emphasises that the role of proactive governance and city leadership should not be underestimated in terms of its efforts to attract and retain investors. Cities are therefore well-advised to keep investing continuously in infrastructure and to ensure that the supply in residential and commercial real estate keeps pace with demand.