China Gains 9 Places Out of 20 in Global List of Dynamic Real Estate
Consultancy firm JLL had recently released a list of the best cities to invest in this year. Of the top 20, Eleven Myanmar reported that 9 belonged to China. The list of the cities was measured in terms of dynamic commercial real estate and socioeconomic standards.
JLL has released the sixth City Momentum Index, which released the information. It showed that Beijing, Chongqing, Chengdu, Guangzhou, Hangzhou, Nanjing, Shanghai, Shenzhen, and Xi'an was now among the 20 top cities.
China is only one of the countries in the Asian region with cities to belong in the top 20 list. According to Mingtiandi, the 'rapid urbanization and economic growth' had been happening to India (Bengaluru and Hyderabad) and Vietnam (Hanoi) as well. These cities were recognized for becoming highly urbanized as well as having attractive real estate as well.
China and India have a dominant position in the lists, with about 3/4 of it allowed to their cities. The only non-Asian country and city on the list are Nairobi, in Kenya. Still, its inclusion in the list is probably because of investments in infrastructure and developments by China, rather than anything else entirely.
Aside from Asian dominance in real estate, JLL also attributed the presence of these cities in the list because of the growth of tech startups in the region. Jeremy Kelly, director of global research at JLL, said that a big part of why Asia is dominating could be because technology firms are in abundance in the region's cities. Bengaluru, Hyderabad, Ho Chi Minh City, and Shenzhen are all hotbeds of technology companies.
The results this year changed in favor of Asia, as last year's list featured mostly "global" cities like New York, Tokyo, London, and Paris. Traditionally, these have been the hotbeds of tech companies; metro areas such as Melbourne, Stockholm, and Silicon Valley have managed to make the list because they have also been home to tech companies, although this is a trend that's now changing.
Growth also brings problems, however, and the cities must make sure they're ready to face these challenges as they become bigger. The transitions may appear to be short-term, for the time being. But as they grow and sustain this growth, they need to make sure that the momentum stays with them for a longer term.
These Chinese cities, however, appear poised to take on this challenge, aided by the "Belt and Road Initiative," according to the report's authors.