City Momentum Index Identifies Austin Texas
as one of the World’s 20 Most Dynamic Cities!
by Jone Lang Lasalle City Momentum Index
If you live in Austin Texas, you can now say you’re an inhabitant of one of the most dynamic cities in the world. At least according to the real estate firm Jones Lang LaSalle, which compiled a list predicting the 20 most dynamic cities with the most momentum worldwide for 2014. Little ol’ Austin now ranks alongside much bigger cities like London, Shanghai, Hong Kong, Dubai, San Francisco, New York, San Jose and Singapore!
Using three main categories — commercial real estate (30 percent), socioeconomic momentum (40 percent) and high-value incubators (30 percent) with high-value incubators representing “the quality of a city’s education infrastructure, its innovation capability and the strength of its technology sector,” according to the study — the firm ranked 111 global cities looking for those with hallmarks of a lively and progressive area. Cities with the ability to adapt and innovate quickly, a knack for fostering new and creative businesses, new building construction and upward trending real estate, made the top 20.
According to Jeremy Kelly, Director, Global Research for Jones Lang LaSalle: “City momentum is about far more than just raw GDP growth. The true foundation of highly dynamic cities emerges from such factors as speed of innovation and creation of cutting-edge businesses along with new building construction, property price movement and investment in real estate from cross-border investors and corporations.
“The new City Momentum Index offers a fresh and uniquely comprehensive perspective that identifies the signals of change and characteristics of city momentum. By focusing on the features of a city that are likely to underpin future performance, the CMI stands apart from the standard historic performance upon which most indices are based. It is such measures of dynamism in infrastructure, connectivity and innovation that we believe will be steering many investment and location decisions in the future, though investors and corporates should note that high momentum can pose both risk and opportunity.”
Seven of the top 20 cities were from the United States and Austin, Texas made #7!. Here are the top ten cities:
1. San Francisco
San Francisco was the “undoubted winner” of Lang LaSalle’s list, with “a unique and unrivaled reputation for innovation, venture capital and startups,” according to the report. Additionally, the firm believes San Francisco will have “the strongest rate of office rental growth in North America during 2014.”
Last year, the Bureau of Economic Analysis found San Francisco metro area had the fastest real gross domestic product growth in the nation in 2012 at 7.4 percent.
- Population: 8.26 million
- Major sectors: High technology, tourism, finance
- Metro GDP (San Francisco-Oakland-Hayward): $360 billion
London is still on the upswing since the 2012 Olympics and “above any other global city in terms of cross-border real estate investment (at $64 billion in the past three years),” according to the study. A huge retail market generates 40 percent of all money spent in the city and London produces about 10 percent of Great Britain’s total national income.
- Population: 8.3 million
- Major sectors: Finance, media, technology, tourism, communications, retail
- GDP: $761 billion
Dubai’s real estate is predicted to boom for snagging the 2020 World Expo, expecting to net about £4 billion worth ($6.69 billion) of infrastructure investments according to the Financial Times. It’s also a “service hub” for the Middle East, North Africa, South and Central Asia and a “preferred staging point for an increasingly dynamic Sub-Saharan Africa,” according to Jones Lang LaSalle.
- Population: 2.2 million
- Major sectors: Tourism, real estate, transportation, finance
- GDP: $82 billion (as of 2008)
The most populous city in China made the list in fourth place because of its high socioeconomic swing, but lacked in real estate and high-value incubators. Its economy certainly has momentum: Its GDP increased by 7.5 percent throughout 2012, up to 2 trillion Yuan.
- Population: 14.3 million
- Major sectors: Retail and wholesale, finance, real estate, heavy industries
- GDP: 2 trillion Yuan
5. Wuhan, China
According to Jones Lang LaSalle, Wuhan is building momentum as it realizes its position as the “hub of Central China.” Wuhan scored strong on socioeconomic and commercial real estate momentums but toward the bottom on high-value incubators.
- Population: 10 million
- Major sectors: Autos, heavy industries, technology
- GDP: 600 billion Yuan in 2011
6. New York
While scoring in the second-to-last ranking for socioeconomic momentum, the Big Apple took top positions for real estate and high-value incubator momentum. New York is “North America’s most international hub for commerce, talent and investment by a significant margin,” according to the report.
- Population: 8.3 million
- Major sectors: Finance, media, technology, retail, tourism
- GDP: $1,358 billion
7. Austin, Texas
Austin made its way to the list because of an attractive environment for businesses, a young and skilled population, a robust culture and a thriving innovation-friendly technology sector. It’s also the smallest city featured. Maybe Austin isn’t so weird.
- Find Austin homes for sale
- Population: 843,000
- Major sectors: high technology, pharmaceuticals, biotechnology
- GDP: $98 billion (Austin-Round Rock area)
8. Hong Kong
A global trading hub, Hong Kong scored high in high-value incubators but lower in economics and real estate.
- Population: 7.15 million
- Major sectors: Finance, trade, tourism, technology
- GDP: $263 billion
9. San Jose
San Jose helped make California this list’s big winner. While San Jose ranked a middling position for socioeconomic momentum, its innovative high-tech industry and solid real estate prospects carried it into the top 10.
- Population: 983,000
- Major sectors: high technology
- GDP: $173 billion (San Jose-Sunnyvale-Santa Clara area)
A major trade, finance and technical hub in Southeast Asia, Singapore has been rebounding since the recession.
- Population: 5.5 million
- Major sectors: electronics, chemicals, pharmaceuticals, finance
- GDP: $275 billion
Here is the complete top 20 list:
If you want to make the move to a small city that can accomplish big things (with a great lifestyle) contact us today. We will take care of your Austin, Texas relocation needs!
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