Cambridge ranks third most dynamic city in Europe


25-09-2019
Image by hughmacmillan from Pixabay

Cambridge ranks as Europe’s third most dynamic city, according to the Savills Investment Management (Savills IM) Dynamic Cities index. It also ranks first for Inclusion, second for Inspiration and Innovation as well as fifth for Infrastructure.

  • City ranks first for Inclusion and second for Inspiration and Innovation.
  • Four UK cities rank in the top 20, with nine in the top 40.
  • The Savills IM Dynamic Cities index comprehensively measures European cities future-proofing qualities across six categories.

The index ranks those European cities with the best long-term commercial real estate (CRE) investment potential. Savills IM analyses and ranks 130 European cities across six categories: Inspiration, Inclusion, Innovation, Interconnection, Infrastructure and Investment. These are key factors in attracting and retaining talent, spurring innovation and increasing productivity, which encourages the wealth and population growth that drives successful CRE markets.

Cambridge ranks highly for Inspiration, Inclusion and Innovation

Although Cambridge edged down one ranking this year from second to third, it still excels in terms of Inclusion, Inspiration and Innovation, ranking either first or second in these categories. With its world-renowned university, Cambridge scores particularly well in terms of cultural and social activities relative to its size. Importantly, the extent to which locals engage in such events is also high.

A leader in advanced technology and life sciences, Cambridge has the largest centre of medical research and health science in Europe. According to 2thinknow : City Benchmarking Data, the city ranked first for start-ups per capita in 2018 and third for number of patents per capita in Europe, making it the second highest-ranked UK city in this context.

Hamish Smith, Head of Research, UK, Savills IM, commented: “Cambridge is a city driven by innovation and the benefits of knowledge spillovers, with its university drawing big science, technology and data firms. These and other qualities identified by our Dynamic Cities index mean that it is well-placed to embrace the challenges of today’s world, such as urbanisation and technological change, while also making the city an attractive real estate proposition.

“Dynamic Cities focuses on factors that are essential considerations for commercial real estate investors. These factors underpin cities’ abilities to attract and retain talent, spur innovation and increase productivity, all of which are essential for commercial real estate markets over the long term.”

Nick Mansley, Executive Director, Real Estate Research Centre and Course Director, Real Estate Masters, Department of Land Economy, University of Cambridge, commented: “Cambridge continues to be a dynamic market that benefits from global trends, with a focus on knowledge-intensive industries. These form a research and innovation ecosystem, with the academic base and other organisations in the subregion at the heart of the city's growth. In striving for excellence, many of the organisations in the city look to a global talent pool, which is reflected in international diversity in the city.

“In addition, with multidisciplinary research becoming increasingly important, the city benefits from having research and technology strengths across a wide range of areas that can interact and collaborate. This makes it a great city for firms seeking to benefit from this innovative culture and its diversity. Cultural and other amenities that make it an attractive city in which to live play an important part in sustaining this growth. The challenge of retaining this attractiveness whilst growing strongly is something that both the public and private sectors have been looking to address with long-term plans for the development of the city and the wider subregion.”

UK cities rank highly

Three other UK cities joined Cambridge in the top 20, including London, which came 1st for the third year in a row; Oxford in 12th place; and Edinburgh in 13th. A further five UK cities ranked in the top 40: Bristol (23rd), Manchester (29th), Belfast (33rd), Reading (37th) and Birmingham (39th).

The UK was particularly strong in the Inspiration category, claiming 4 of the top 10 slots, with London first, Cambridge second, Oxford seventh and Edinburgh ninth. Inspiration measures livability, capturing a range of indicators including the intensity of cultural amenities that drive engagement and discussion, such as theatres, museums and parks and cafes, all of which provide a rich urban experience. The subfactors included in the Inspiration category are important to attract and retain human talent.

Analysis shows economic strength of top dynamic cities

Analysis accompanying the Dynamic Cities index highlights the economic strength of the top 10 cities, which delivered GDP growth of 70% between 1998 and 2018, versus 39% for the 28 countries in the EU (EU-28). Employment levels in the top 10 over this period also rose by 31%, versus 15% in the EU-28, according to Oxford Economics.

Compared with the other major investible European markets elsewhere in Europe, the top 10 dynamic cities delivered the strongest prime total returns growth across all three CRE sectors – office, logistics and high street retail – followed by the next-best-30 dynamic cities.

The index predicts that all CRE sectors will benefit from these characteristics over the long run: rising employment will help support the office sector, wealth creation will benefit the retail sector and the explosive growth in e-commerce will drive demand for urban logistics and warehouse facilities.

 

 

TOP 20 EUROPEAN DYNAMIC CITIES

 

 

Overall

Inspiration

Inclusion

Innovation

Interconnection

Infrastructure

Investment

1

London

London

Cambridge

London

London

London

London

2

Paris

Cambridge

London

Cambridge

Paris

Paris

Paris

3

Cambridge

Prague

Barcelona

Paris

Berlin

Stockholm

Zurich

4

Berlin

Amsterdam

Lausanne

Berlin

Munich

Oslo

Stockholm

5

Amsterdam

Basel

Basel

Amsterdam

Copenhagen

Cambridge

Istanbul

6

Munich

Reykjavik

Dublin

Oxford

Frankfurt am Main

Copenhagen

Lausanne

7

Dublin

Oxford

Munich

Dublin

Barcelona

Prague

Munich

8

Lausanne

Berlin

Zurich

Barcelona

Amsterdam

Bern

Oslo

9

Basel

Edinburgh

Edinburgh

Munich

Innsbruck

Lausanne

Manchester

10

Stockholm

Florence

Madrid

Stockholm

Gothenburg

Zurich

Bern

11

Zurich

Vienna

Oxford

Zurich

Vienna

Bergen

Berlin

12

Oxford

Paris

Berlin

Lausanne

Bonn

Vienna

Amsterdam

13

Edinburgh

Dublin

Bristol

Madrid

Stockholm

Dublin

Geneva

14

Barcelona

Lausanne

Luxembourg

Brussels

Leipzig

Basel

Frankfurt am Main

15

Copenhagen

Ljubljana

Brussels

Luxembourg

Brussels

Berlin

Hamburg

16

Frankfurt am Main

Madrid

Paris

Vienna

Madrid

Amsterdam

Copenhagen

17

Vienna

Copenhagen

Frankfurt am Main

Prague

Milan

Stavanger

Vienna

18

Bern

Bristol

Amsterdam

Eindhoven

Geneva

Helsinki

Basel

19

Oslo

Munich

Bern

Copenhagen

Brescia

Gothenburg

Birmingham

20

Madrid

Bern

Bonn

Basel

Oslo

Trondheim

Helsinki

 

Image by hughmacmillan from Pixabay

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