Top European cities for property development
The Dynamic Cities report by international real estate investment manager Savills uses 60 indicators across the six subcategories of investment, innovation, inspiration, inclusion, interconnection and infrastructure to identify the top 40 European cities for long-term real-estate investment. The index identifies the top cities for real-estate investors that demonstrate balanced performance across all six categories. Savills also incorporates cities’ longer-term growth potential rather than a focusing on the one- to two-year, shorter-term real-estate cycle.
The Dynamic Cities index helps investors choose cities where most people want to work, rest and play – which can only be good for long-term real-estate investment. The top cities identified in the report all have infrastructure investments and well-developed knowledge networks and are supported by universities and enterprises that are influencing innovation. They all boast a global talent pool and have strong cultural amenities to retain their workforce and continue to attract highly skilled labour, generating innovation that creates wealth over the longer term.
Sustainability is key
The index also helps identify which European cities are best equipped to handle future economic and population growth trends in a sustainable way. Environmental, social and governance considerations are key to urban planning at both the city and real-estate asset levels as they serve to future-proof cities by mitigating environmental risk, ensuring longevity and resilience.
Amsterdam: a sustainable city
Amsterdam placed fourth in this year’s index, maintaining its spot in the top five. A central reason for its high placement in the list is the Dutch capital’s approach to sustainability, which is playing a key role in the Zuidas Business district’s evolution into an urban hub and residential area. To cope with a growing demand for office and residential space and to ease pressure on public transport, the city’s main financial centre is undergoing major development. Some 300,000 square metres of office space, 400,000 square metres of facilities and 7,000 new homes are expected to be built in the area over the next few years. And sustainability is playing a key role in the district’s evolution. As Amsterdam’s energy and environmental agenda calls for reducing per-capita energy use by 20% between 2013 and 2020, many new office and mixed-use buildings will be BREEAM-certified on completion.