Barcelona and Madrid are among the 20 most dynamic cities in Europe
According to the Dynamic Cities Index published by Savills Investments Management, Barcelona and Madrid are among the twenty most dynamic European cities. Also London, Paris, Cambridge, Berlin and Amsterdam are the five cities with the greatest capacity to attract and retain talent, which are very important elements to improve their respective real estate markets and to boost local economy.
Barcelona is established as an innovation hub and climbs seven positions from the list published last year, reaching the fourteenth position in the ranking. Madrid remains in twentieth position, being the last city in this ranking.
Barcelona is among the ten best cities for innovation and interconnection
Barcelona is particularly strong in the inclusion’s manoeuvrability subcategory , which analyses the strength of public transport. In fact, the Catalonian capital performance in the inclusion category has driven this improvement. Furthermore, it is among the ten best cities for innovation and interconnection, two values that triggers entrepreneurship and gentrification, and is consolidated as one of the main centres of innovation in Europe.
The index ranks the European cities with the best long-term investment potential in tertiary buildings. The analysis accompanying the index highlights the economic soundness of the top ten cities, which recorded GDP growth of 70% between 1998 and 2018, compared to 39% for the 28 EU countries (EU-28). In addition, according to Oxford Economics, employment levels in the top ten cities during this period increased by 31%, compared to 15% in the 28 Member States.
The Savills IM “Dynamic Cities” index analyses and classifies 130 European cities into six categories and highlights those with the capacity to attract and retain talent, promote innovation and increase productivity, which fosters population growth and the wealth that drives the success of tertiary real estate markets.
The index predicts that all segments will benefit from these characteristics in the long term: increasing employment levels will help boost the office sector, wealth creation will benefit the retail sector, and the high growth of e-commerce will boost demand for logistics assets too.
Compared to other European markets where there is investment potential, the cities in the top ten of the ranking recorded the highest growth in total returns for prime assets in all three segments of tertiary real estate (offices, logistics and street premises).
A remarkable fact included in the index is the positive position of London, despite the negative effects of Brexit. The English capital also holds first place in five of the six categories in the classification, which are inspiration, innovation, investment, infrastructure and interconnection. It obtained second place in terms of inclusion; a category led by another British city: Cambridge.