CPABC Industry Update Summer 2016 | Page 7

“Cities globally are undergoing a metamorphosis in the face of rapid urbanization, technological disruption and new models of commerce. Cities everywhere are seeking innovative approaches to seize opportunities and tackle challenges to ensure they become and remain sustainable, competitive and livable.” - Greg Clark, Chairman of The Business of Cities and the JLL Cities Research Center The new leading ‘New World Cities’ The old world order and the traditional hierarchy of cities is breaking down. Globalization, urbanization, and technological advancement, alongside a deeper understanding of what makes cities competitive and attractive, has forced a major shift in the world’s urban commercial geography. Globalisation and Competition: The New World of Cities, a report by JLL in conjunction with The Business of Cities, reveals the evolution of new types, styles, and clusters of cities that will significantly change the future geography of real estate investment. Three categories of global cities: New, Emerging, and Established The New World Cities are an evolving group of cities that are redefining what it means to be global. Typically mid-sized, they have strong technology credentials, are highly livable with favourable infrastructure, and are often supported by global specialisms. Archetypal new world cities include Munich, Boston, and Brisbane. These cities are attracting talent and corporations as well as a disproportionate share of global real estate investment. JLL predicts that these cities will be at the forefront of innovations in real estate, living, and work styles by virtue of creating urban development models that are smart, sustainable, and resilient. Emerging World Cities, given their long-term growth opportunities, are attracting increasing volumes of real estate activity, but the rise of these ‘Emerging World Cities’ is uneven. Shanghai and Beijing, as well as Istanbul, Taipei, and Kuala Lumpur, are fast-tracking to maturity, but others are struggling to keep up with the pace of change. The Established World Cities, notably the “Big Six” of New York, Tokyo, London, Paris, Hong Kong, and Singapore, will maintain their dominance, but will need to execute bold and ambitious urban transformation projects to accommodate growth and maintain their global competitiveness. SUMMER 2016 | page 7