2018 - dynamic cities · dynamic cities considers energy, sanitation, buildings, transport as well...
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2018
Kiran PatelGlobal Chief Investment Officer
Irfan Younus Head of Research, Europe
Judith FischerRegional focus: Benelux
Nicole Bångstad Regional focus: Nordics
Benedict Lai Regional focus: Asia-Pacific
Victoria OrmondRegional focus: Spain, United Kingdom
Andreas Trumpp Regional focus: Germany, Poland
Hilary Waterman Regional focus: Ireland
VISIT THE WEBSITE
dynamiccities.savillsim.com
Europe stands among the most urbanised regions on the globe. Trends in urbanisation are increasingly important for investors. However, not all cities are equal. With the predicted growth of disruptive technology, it is vital to identify locations that will show resilience to change.
PREFACEThe Savills Investment Management Dynamic Cities index incorporates cities’ longer-term upwards growth potential rather than focus on the one- to two-year, shorter-term real estate cycle.
Using 60 indicators across 6 subcategories, Savills Investment Management has identified London, Cambridge, Paris, Amsterdam and Berlin as the top five European cities for real estate investment.
These winning cities are enjoying infrastructure investments and well-developed knowledge networks. They are supported by a backdrop of universities and enterprise that are influencing innovation.
The cities boast a global talent pool and have strong cultural amenities. Not only does that retain a workforce, but it also continues to attract highly skilled labour, generating innovation that creates wealth over the longer term.
The Dynamic Cities project allows investors to choose cities where most people want to work, rest and play. That can only be good for long-term real estate investment.
All three property sectors - office, retail and industrial - benefit from these characteristics. Rising employment helps support the office sector. Wealth creation is a positive for growing consumer expenditure, benefitting the variety of retail subsectors. Together with structural change in the form of e-commerce and trends in last-mile delivery, the demand for the industrial sector can only be positive.
KIRAN PATEL
Global Chief Investment Officer
Savills Investment Management
2018
2 3
2018
2 3
Contents
LONDON• Page 18
CAMBRIDGE• Page 20
PARIS• Page 22
AMSTERDAM• Page 24
BERLIN• Page 26
DUBLIN• Page 28
MUNICH• Page 30
OXFORD• Page 32
BASEL• Page 34
STOCKHOLM• Page 36
14.Future proofingcities through ESG
16. 2018 top 10 dynamic cities
10. What makes adynamic city
06. Top 40 dynamic cities
08. Methodology
12. Why dynamic cities matters for commercialreal estate
2018
4 54 5
RANK 2018 RANK 2017 CITY COUNTRY
1 1 London England
2 3 Cambridge England
3 2 Paris France
4 4 Amsterdam The Netherlands
5 5 Berlin Germany
6 7 Dublin Ireland
7 6 Munich Germany
8 14 Oxford England
9 15 Basel Switzerland
10 8 Stockholm Sweden
11 10 Zurich Switzerland
12 9 Edinburgh Scotland
13 16 Lausanne Switzerland
14 19 Copenhagen Denmark
15 24 Luxembourg City Luxembourg
16 25 Bristol England
17 21 Frankfurt am Main Germany
18 12 Vienna Austria
19 13 Oslo Norway
20 11 Madrid Spain
RANK 2018 RANK 2017 CITY COUNTRY
21 17 Barcelona Spain
22 18 Brussels Belgium
23 20 Geneva Switzerland
24 22 Bern Switzerland
25 23 Prague Czech Republic
26 28 Helsinki Finland
27 26 Hamburg Germany
28 29 Reykjavik Iceland
29 27 Manchester England
30 - Gothenburg Sweden
31 40 Newcastle upon Tyne England
32 34 Milan Italy
33 31 Belfast Northern Ireland
34 - Cardiff Wales
35 - Eindhoven The Netherlands
36 37 Trondheim Norway
37 36 Bergen Norway
38 35 Reading England
39 30 Birmingham England
40 38 Stavanger Norway
2018
6 7
TOP 40DYNAMIC CITIES
6 7
2018
8 9
METHODOLOGY
CATEGORIES
INNOVATION
Connectivity
Digital, local, national and international connectivity
Commuting
Factors related to commuting and congestion
Local connectivity
Local transport indicators less
transport projects underway
Transport infrastructure improvements
Transport infrastructure under execution, in both
absolute and relative terms
INTERCONNECTION INFRASTRUCTURE
INSPIRATION
Future population
Captures future human capital
Current infrastructure
Includes human and digital Infrastructure
Governance
A composite score of different risk and governance factors
Infrastructure spending
Includes number of transport, energy, sanitation, digital, housing, amenities and other projects relative to population size
Parks & cafes
A composite of the number of high quality parks and cafes within the city limits
Engagement
The measure of how readily a city’s population
engages in arts and culture
Arts sector strength
The overall strength of a city's arts and culture sectors in comparison to other cities
Culture
The density of cultural events, local activities and
social entertainment relative to a city's population
Liveability
Indicators of contentment with living in a city
Resources
Indicators of the strength of resources such as successful funding or
universities that promote innovation
Activity
A measure of the level of Innovation activity
Patents
A composite measure of absolute and relative density of patent generation
INCLUSION
Magnet & purchasing power
Given that there is generally a positive correlation between a city’s cost of living and apparent attractiveness, spending power indicators are used to capture relative affordability
Participation
Indicators related to the level of grassroots activity
across demographics
Diversity
A composite of demographic indicators
Maneuvreability
Ability to travel around a city
INVESTMENT
Commercial real estate score
Indicators related to a city’s real estate market
liquidity and stock of sustainable buildings
Wealth
A composite measure of wealth indicators and driver of commercial real estate markets
Property activity
A composite indicator of commercial real estate activity
Population growth
A composite measure of predicted
demographic changes
Magnet & pollution
The degree that a city draws people from elsewhere who may return home in the future, combined with pollution that may impede walkability
Savills IM Dynamic Cities aims to capture the factors that make a city attractive to talent, resilient to disruptive technology and a leader in the knowledge economy.
The index was created using statistical analysis and the Organisation for Economic Co-operation and Development (OECD) handbook on constructing composite indicators.
More than 250 in-house, publicly available and externally purchased factors were collected for 130 cities. These cities include all of the European capitals as well as cities with a minimum metropolitan area of 250,000 inhabitants and positive forecast population growth.
The final index includes 60 inputs across 6 categories. The inputs range from conventional commercial real estate factors to wider urban economics indicators.
The data behind Dynamic Cities is from a combination of proprietary in-house calculations as well as publicly available and commercially provided sources. Key data providers include 2thinknow : City Benchmarking Data, Timetric and Oxford Economics. Data was collected during Q1 2018.
The model’s six categories are Investment, Innovation, Inspiration, Inclusion, Interconnection and Infrastructure. The index works on the basis that top cities for real estate investors demonstrate balanced performance across all of these categories.
8 9
2018
10 11
WHAT MAKES A DYNAMIC CITY
INFRASTRUCTURE INTERCONNECTION INCLUSION INSPIRATION INNOVATION INVESTMENT
WHY IS IT IMPORTANT?
Infrastructure is critical to support the sustainable expansion of a city’s population and physical size.
Governments may use infrastructure spending as a tool to stimulate economic growth and to earmark a city as having future potential.
Strong digital infrastructure is necessary to both utilise technological advancements and lead in technological innovation.
Human and intellectual capital as a form of infrastructure are crucial to supporting the knowledge economy.
Interconnection is necessary to link different players and entities within a city and to the wider world.
Without interconnection, inspiration and inclusion have limited ability to promote the transfer of ideas and drive to innovate. For example, economist Edward Glaeser highlights the importance of face-to-face contact to spur creativity, collaboration and innovation.
Good transport to and within a city helps reduce congestion, which carries with it the opportunity cost of lost time, productivity and utility.
A city that is well-connected physically also promotes even development and reduces the risk of spatial mismatch with pockets of high unemployment.
A globally connected city not only reduces human capital barriers to entrepreneurship, but also helps that city operate in the global marketplace.
Social and economic theorist Richard Florida espouses the benefit of tolerance, or what he labels an ‘open culture premium.’
An inclusive society promotes freedom of expression, a factor of inspiration that makes a city more attractive to talent.
Lower barriers to entry for human capital fosters a diversity of ideas and facilitates mobilisation of resources to support entrepreneurial activity within cities.
Diversity of experience and background also facilitates knowledge spillovers and effective problem solving.
Creative environments and pools of talented, open-minded individuals are essential to innovation taking hold.
Florida suggests that the ‘creative class’ generates an ‘aesthetic-amenity premium’ that culturally enhances one’s experience of a city and helps draw and retain urban populations.
Researcher Allen Scott suggests that creativity is ‘organically developed,’ and the Dynamic Cities model includes an indicator to capture this in the form of self-organised community groups.
Innovation, human capital and technology are central to economic growth theory.
Innovation is defined as the creation of new ideas, methods or things.
Technology, a by-product of innovation, enables productivity and capacity for growth.
Research and development (R&D) fosters this technological change and helps to future proof cities.
Although innovation has and will continue to disrupt existing sectors of the economy - for example, in the case of driverless cars or self-checkout machines in supermarkets - advanced technologies also create new employment categories and offer potential cost savings and scalability.
The innovation, inspiration, inclusion, interconnection and infrastructure that characterise Europe’s dynamic cities contribute to wealth creation, sustainability and long-term population growth, all of which are fundamental drivers of commercial real estate.
Taken together, measures of these six ‘i’s’ serve as a guide to the investment potential of European cities.
WHAT GOES INTO IT?
Dynamic Cities considers energy, sanitation, buildings, transport as well as information infrastructure, which is gaining in importance. The index examines both infrastructure in place and that under development.
Dynamic Cities also incorporates human and intellectual capital as forms of infrastructure - for example, by considering research institutions and forecast population growth.
Governance is also taken into account as an intangible form of infrastructure crucial for cities’ long-term performance.
Interconnection considers the strength of linkages within cities, globally and nationally, including the type and variability of transport in place and under development.
The index considers walkability as an important method of transport as well as a facilitator of engagement and interaction between residents and businesses, as espoused by urban studies theorist Jane Jacobs.
Interconnection also considers other connectivity indicators such as digital connectivity as well as spaces that promote interaction and collaboration, such as cafes and universities.
The underlying Dynamic Cities indicators draw on research showing that cultural and other types of diversity - for example, age, sexuality, job type or religion - have a positive correlation with wealth.
Factors such as strength of public transport to reduce spatial mismatch are also incorporated.
The index examines purchasing power rather than cost of living as an indicator of affordability, due to the strong positive correlation between diversity and wealth.
Dynamic Cities includes indicators related to liveability, culture, engagement, arts sector strength as well as parks and cafes.
In addition to capturing the number of green spaces accessible to a community, the category takes into account the quality of those spaces and, therefore, their capacity to inspire.
This category includes indicators of a city’s resources to innovate. For example, cities with well-established universities encourage innovation, often help bring research to the commercial realm and promote agglomeration effects.
The index considers a city’s absolute number and density of patents generated as well as other indicators of innovation activity, such as start-ups.
The Investment category looks at a series of wealth indicators, a city’s current real estate investment activity, its pool of officially green-rated buildings and its real estate pipeline currently under construction.
HOW IS IT VALUABLE TO COMMERCIAL REAL ESTATE?
Multichannel retail requires well-functioning virtual infrastructure, while developments in online shopping and last-mile delivery mean physical infrastructure is increasingly important.
Reliable and powerful electricity supplies are also essential to logistics units that use automation.
Population size influences demand for office markets and creates critical mass for retail.
Strong governance is important to support the investment market, facilitating transactions and supporting investor rights.
Interconnection ultimately fosters innovation, supporting the wealth and growth important for all commercial real estate sectors.
In the age of big data, digital connectivity is of growing importance to companies, from retailers to financial institutions.
Agglomeration effects combined with well-linked transport foster the development of new office and research centres in cities such as Paris and Berlin.
Logistics benefits lower-congestion methods of moving goods.
Studies have demonstrated that inclusion has a positive causal effect on a region’s income and real estate values.
Making a city more attractive to a wider cohort of firms and individuals is likely to increase demand for commercial and residential real estate.
Cross-group engagement also fosters a diversity of ideas and knowledge spillovers, encouraging innovation and wealth creation, which is positive for real estate.
The subfactors included in the Inspiration category are important to attract and retain talent, which supports wealth, population growth and, in turn, commercial real estate markets.
A weight of literature links the presence of creative groups in an area to localised real estate price growth.
The extent of cultural amenities and green spaces in a city are also shown to have a direct correlation with demand for space.
A strong knowledge economy underpinned by innovation helps future proof a city against structural obsolescence, helping support commercial real estate markets over the longer term.
Innovation supports the creation of new firms, which in turn increases demand for office space and R&D laboratories.
A city with innovative critical mass also creates a centripetal force of talent attraction, and resulting productivity can lead to wealth and spending power.
Wealth creation, sustainability and long-term population growth are drivers of commercial real estate performance.
Market depth and development are also important to cities’ future investment potential.
10 11
WHY DYNAMIC CITIES MATTERS FOR COMMERCIAL REAL ESTATE
2018
12 13
Wealth and population trends, particularly employment, drive successful commercial real estate markets. The factors underpinning the Dynamic Cities index are those identified as able to attract and retain talent, spur innovation and increase productivity, which encourage wealth and population growth.
Dynamic Cities index is forward looking, assessing whether cities have the foundations for future strong performance, but their history can illustrate how many of these cities are already outperforming.
Over the last 20 years, the top 10 dynamic cities have collectively outperformed the EU-28 overall in terms of GDP (figure 1) and employment (figure 2), providing a strong backdrop for real estate performance. This outperformance is not limited to just strong economics, however.
By taking the major investible European real estate markets (as reported by PMA, excluding Moscow) and categorising these as a top 10 dynamic city, top 40 dynamic city or neither, we have analysed the trend of prime annual total returns for the core commercial real estate sectors since the start of the millennium.
FIGURE 1: GDP INDEX 1997-2017
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
2014
2015
2016
2017
1997
1998
1999
2000
2010
100
180
EU - 28Top 10 cities
FIGURE 2: EMPLOYMENT INDEX
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
2014
2015
2016
2017
1997
1998
1999
2000
2010
100
135
EU - 28Top 10 cities
Sources: Oxford Economics, Savills Investment Management
Note: GDP and employment for the top 10 cities based on most local NUTS region for London, Cambridge, Paris, Amsterdam, Berlin, Dublin, Munich, Oxford, Basel and Stockholm; 1997=100
FIGURE 3: PRIME ANNUAL OFFICES TOTAL RETURN TREND LINES 2000-17 (%)
Other citiesTop 40 citiesTop 10 cities
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
2014
2015
2016
2017
2000
2010
-20
0
30
FIGURE 4: PRIME ANNUAL LOGISTICS TOTAL RETURN TREND LINES 2000-17 (%)
Other citiesTop 40 citiesTop 10 cities
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
2014
2015
2016
2017
2000
2010
-20
0
30
FIGURE 5: PRIME ANNUAL HIGH STREET TOTAL RETURN TREND LINES 2000-17 (%)
Other citiesTop 40 citiesTop 10 cities
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
2014
2015
2016
2017
2000
2010
-20
0
30
Sources: PMA, Savills Investment Management
Note: dashed lines indicate average prime annual total return for the major investible markets in each respective category. Solid lines are the long-term trend.
We find that while all cities experience cyclicality, dynamic cities demonstrate a stronger upwards trend in prime total returns for office, logistics and retail.
As illustrated in figures 3-5, for all three commercial real estate markets, the top 10 dynamic cities demonstrate the strongest upwards trend in prime total returns, followed by the top 40 cities, which have a stronger upwards trend than the major investible European markets not in the top 40.
Due to availability of data, we have only analysed the prime total returns for a subset of larger cities analysed in our Dynamic Cities index. However, we might expect the smaller, up-and-coming cities ranked highly by the index – for example, Cambridge and Basel – to offer similar enhanced real estate performance in the future. This is because they enjoy strength in the factors needed to retain talent, support a growing population and optimise wealth.
Long-term performance improvement becomes more important in the context of secular stagnation, or lower-for-longer growth trends. As total returns moderate, identifying those cities that will outperform over the long term is key. Dynamic Cities aims to highlight such cities.
12 13
2018
14 15
FUTURE PROOFING CITIES THROUGH ESG
The Dynamic Cities index helps identify which European cities are best equipped to handle future economic and population growth trends in a sustainable way. ESG considerations are key to urban planning, as they serve to future proof cities by mitigating environmental risk, ensuring longevity and resilience.
LONDON IS HOME TO OUTSTANDING GREEN SPACES THAT I WANT TO PROTECT, INVEST IN AND IMPROVE AS WE AIM TO BECOME THE WORLD’S FIRST NATIONAL PARK CITY.
Mayor of London, Sadiq Khan
On average, top 10 Dynamic City host countries illustrate better governance than the Western European average, with a 21% better Corruption Perception Index score (80.3 vs. 66.4).
Source: Transparency International
World Economic Forum research has also demonstrated links between a city’s growth trends and level of social inclusion. The Dynamic Cities index examines social inclusion as a driver of entrepreneurialism and innovation via the promotion of social diversity and interest group participation.
Social spaces serve as meeting points and sources of inspiration in a city. There are established links between economic growth and factors that influence a city’s inspiration potential, measured by indicators such as number of cafes or green spaces, amount of litter or the extent of accessible cultural amenities that encourage social connectivity and knowledge spillovers.
Planned environmental and social initiatives will fall short in cities without good governance structures and processes in place. Effective governance underpins urban planning and development, influencing a diversity of city characteristics from levels of bribery and corruption; to socio-political impacts such as politically organised violence, social conflict, criminality, gangs and terrorism; to the need for planning regulations that are equitable, transparent and democratic.
Governance is crucial to ensure a city’s stability, resilience and propensity for economic growth. Consequently, the Savills IM Dynamic Cities Infrastructure category takes into account governance measures.
Air pollution
According to the World Health Organisation, outdoor air pollution caused an estimated 4.2 million premature deaths worldwide in 2016. City mayors are unsurprisingly focusing more and more on ambient air pollution and its effects on citizens’ heath.
Particularly impactful to a city’s economic growth potential are elevated levels of fine particulate matter (PM2.5). Dynamic Cities incorporates a measure of PM2.5 levels in its Interconnection category, as increased levels of ambient air pollution may inhibit movement of people, the extent to which they cross paths with other city dwellers as well as their likelihood of sharing ideas and forging connections, impacting a city’s economic growth.
There is increased awareness of the need to consider environmental, social and governance (ESG) factors at both the city and real estate asset levels.
Urban planning with ESG in mind helps make cities more resilient to future shocks, and better able to achieve sustained economic growth. At the asset level, optimising ESG helps foster growth and future proof investor returns.
The Dynamic Cities model considers several environmental, social and governance elements that help set cities on paths to sustainable growth. Here, Lucy Auden, ESG Manager at Savills IM, explores which ESG factors are becoming increasingly important considerations for real estate investment.
Green transport infrastructure
Greener transport contributes significantly to the reduction of city dwellers’ carbon footprint, ambient air quality and health and wellbeing, promoting productivity. Dedicated bike routes, bike hire schemes, wider pavements and efficient public transport systems all increase the ease and safety with which people can commute carbon neutrally. Showers, lockers and bike storage are now commonplace in office buildings across Europe, and proximity to transport hubs increases property values and occupancy rates.
Increasingly, newly constructed residential blocks are limiting car parking spaces (with the exception of disabled access) in cities with sophisticated public transport systems that can draw citizens away from private vehicles and towards non-car-based transport. For example, in London, which has a robust public transport system, the number of cars per household has dropped steadily since 2008, according to Transport for London.
Low-carbon transport programs are particularly successful in Northern European cities, which benefit from high density, and where cars were not planned as the primary mode of transport. Low-carbon commuting is also linked to improved worker health, wellbeing and productivity, with research from the National Cycle Network suggesting a lower number of sick days for office workers who cycle to work.
The Savills IM Dynamic Cities index considers the benefits of lower-carbon transport as part of its Interconnection measure.
ENVIRONMENTAL
0
2
4
6
8
10
12
14
16
18
20
LONDON CAMBRIDGE PARIS AMSTERDAM BERLIN DUBLIN MUNICH OXFORD BASEL STOCKHOLM
ug/m
3
European average
SOCIAL GOVERNANCE
FUTURE PROOFING CITIES THROUGH
ESG
ANNUAL MEAN LEVELS OF PM2.5 IN TOP 10 DYNAMIC CITIES
Sources: World Health Organisation, Cambridge City Council, Savills Investment Management14 15
2018
16 17
London
Paris
Amsterdam
MunichBasel
Berlin
Stockholm
Dublin
Cambridge
Oxford
All of the top 10 cities saw an increase in their overall scores this year, apart from London, which declined by 1 point.1 However, LONDON comfortably retains the top ranking for the second year running, leading the way in all of the 6 categories apart from Inclusion, for which it ranks 3rd.
CAMBRIDGE moved up one place to 2nd this year, swapping places with PARIS (3rd), which continues to improve in terms of underlying scores. Cambridge particularly outperforms on density of grassroots organisations related to technology and the arts. The city also has the highest density of start-ups relative to population out of the 130 cities included in the index, according to 2thinknow : City Benchmarking Data.
AMSTERDAM and BERLIN maintain their places in the top 5. DUBLIN moved up one place to 6th, and MUNICH down one place to 7th. Dublin’s population has a high density of grassroots organisations and a strong university presence supporting its improving Innovation indicators. Munich also demonstrates improvement on many indicators.
OXFORD and BASEL, ranked 8th and 9th, respectively, are both new entrants into the top 10 this year.
1 See respective city pages for score breakdowns or visit dynamiccities.savillsim.com/city-rankings to compare scores across cities and categories.
Oxford has been earmarked by the UK government for 100,000 new homes and represents the western point of the ‘golden triangle’ of leading research universities in the UK. The city has moved into the top 5 for Innovation, with strong grassroots participation and a high density of start-ups relative to population.
Basel sits in the top 5 for the majority of Dynamic Cities wealth indicators and has seen an increase in population growth forecasts. The city is also an Innovation hub, ranking second for overall density of patents relative to population.
Finally, STOCKHOLM takes the 10th place in this year’s index. While this represents a fall of two places, Stockholm’s overall score has improved. Furthermore, the Swedish capital remains in the top 5 cities for absolute level of patent generation.
In the top 10 last year, ZURICH and EDINBURGH fell slightly in the rankings for 2018, to 11th and 12th, respectively. However, the overall scores for both cities have improved, as have their performances in categories such as Innovation and Investment.
2018TOP 10 Dynamic Cities
16 17
6
2 4
10
8
3
9
7
5
1
WES
T PA
RKSIDE
A200 CREEK ROAD
JOHN H
ARRISON W
AY
A1261 LIMEHOUSE LINK ASPEN WAY
A12
61
A1020 LOWER LEA CROSSING
MARSH WALL
A1206
’
OA
D A
1206 MA
NC
HEST
ER R
OAD
A1206 W
ES
TFE
RR
Y R
OA
D
A12
B125 ABBOTT ROAD
A206
T
RAFALGAR ROAD A206 WOOLWICH ROAD
A206 WOOLWICH ROAD
PE
AR
TR
EE
WAY
A22 03 B
LACKW
ALL LA
NE
A102 BLACKWALL TUNNEL APPROACH A102 A
102
MILLENNIUM W
AY BUGSBY’S WAY BUGSBY’S WAY
CUSTOMHOUSE
ROYAL VICTORIA
WESTSILVERTOWNEMIR
ATES AIR
LINE
EASTINDIA
NORTHGREENWICH
BLACKWALL NORTH GREENWICH PIER
RIVER THAMES
TUNNEL
THE 02
BLACKWALL
WEST INDIAQUAY
CANARYWHARF
POPLAR
WESTFERRY
HERONQUAYS
CANARY WHARF
SOUTH QUAY
CROSSHARBOUR
MUDCHUTE
ISLANDGARDENS
CUTTYSARK
MAZEHILL
WESTCOMBEPARK
CHARLTON
CANNINGTOWN
LONDON CITY CRUISE PORT AT
ENDERBY WHARF
PENINSULA PLACE CALATRAVA
BROCKLEBANK RETAIL PARK
IKEA GREENWICH
A1011 SILV
ERTOW
N WAY A1020 NORTH WOOLWICH ROAD
A13 EAST INDIA DOCK ROAD
A13
B
ARKING ROAD
3
42
6
7
EXCEL LONDON5
8
1
London Underground
Docklands Light Railway
Elizabeth line
Transport for London
CASE STUDYPlacemaking in the Greenwich Peninsula area
The Greenwich Peninsula is centrally located in London’s zone 2, one tube stop east of the 1 Canary Wharf financial services
hub. This formerly undeveloped area is rapidly transforming into a place for living and working as well as recreation. At the tip of the peninsula sits one of the busiest indoor event arenas in the world, 2 The O2, which will soon also include a new designer fashion outlet. Additionally, 3 Peninsula Place, the planned GBP
1 billion tower designed by architect Santiago Calatrava, will house a new transport hub, performance venue and winter gardens, complementing office space and other leisure attractions.
The region is already well connected by tube, bus and boat services as well as by the more recent 4 Emirates Air Line, a cable
car link to the 5 ExCeL London exhibitions and convention centre.
The Elizabeth line, scheduled to open later this year, will improve underground connectivity to the peninsula. Planning permission has also been granted for a 6 London City Cruise Port at
Enderby Wharf.
More than 15,000 residential units are also planned for the area, with several of these schemes already completed. According to the Greater London Authority, the redevelopment will also include education and health care facilities, film and media studios, community spaces, a 5K running track and an updated Thames foot and cycle path.
The area at the base of the peninsula is already benefiting from the above placemaking, with the recently opened 7 Brocklebank Retail Park and 8 Ikea Greenwich, which will be
the first full-size store in London in 13 years, set to open by the end of 2018.
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
2018
18 19
LONDON#1
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
97SCORE
10092
100100
100100
THE LONDON INFRASTRUCTURE 2050 PLAN INVOLVES MORE THAN GBP 1 TRILLION WORTH OF INVESTMENT COVERING HOUSING, TRANSPORT, DIGITAL INFRASTRUCTURE AND BASIC SERVICES.
Source: Savills Investment Management
NO.1 FOR INTERCONNECTION
NO.1 FOR INNOVATION
NO.1 FOR INVESTMENT
TOP 1O FOR INCLUSION
NO.1 FOR INSPIRATION
NO.1 FOR INFRASTRUCTURE
18 19
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
Historically centred around the
University of Cambridge, the city
of Cambridge is now the base for
the largest technology cluster in
Europe. Over 4,700 knowledge-
intensive firms are located in the
city, employing over 60,000 people
and generating more than GBP 12
billion in revenue.
The 1 Cambridge Science
Park to the north, 2 Cambridge
Biomedical Campus to the
south and 3 West Cambridge
research space for physical
sciences and technology are a
few examples of innovation hubs
outside the city centre. According
to the University of Cambridge,
the city has the highest density of
patent applications relative to UK
population. In fact, this density is
higher than that of the next four
cities combined.
Just 45 minutes by train from
London, the city’s connectivity
has further improved with the
opening of a second rail station, 4 Cambridge North, supporting
innovation hubs in this area. A
possible third station, near the
biomedical research hub south
of the city, is currently under
discussion. This could eventually
provide links to Milton Keynes and
Oxford.
The city’s employment growth
and large student population
have led to pressures on housing.
However, pressures are now
easing, with an average of 2,000
homes completing each year,
including developments such as 5 Trumpington Meadows and 6 North West Cambridge.
Innovation hubs, transportation nodes and residential developments outside Cambridge city centre
Source: Savills Investment Management
Cambridge City Centre
CAMBRIDGE INTERNATIONAL
AIRPORT
RIV
ER CA M
RIVER CAM
Trumpington Meadows
Cambridge Biomedical Campus
Cambridge Science Park
West Cambridge
North West Cambridge
Cambridge railway station
Cambridge North station
14
5
6
2
3
2018
20 2120 21
CAMBRIDGE#2
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
84SCORE
96
100
43
79
99
66
CAMBRIDGE IS HOME TO MORE THAN 4,700 KNOWLEDGE-INTENSIVE FIRMS, EMPLOYING 60,000 PEOPLE AND GENERATING MORE THAN GBP 12 BILLION IN REVENUE.
TOP 1O FOR INFRASTRUCTURE
TOP 1O FOR INNOVATION
TOP 1O FOR INSPIRATION
NO.1 FOR INCLUSION
line 17
line 11
line 16
line 15
line 14
line 18
Charles de GaulleAirport
To Le Bourget Airport
Clichy - Montfermeil
Le Bourget RER
Nanterre
Pont de Sèvres
Versailles Chantiers
Val-d’Oise
Yvelines
Essonne
Seine et-Marne
Massy Palaiseau TGV
Orly Airport
Noisy - Champs
Champigny CentreVillejuif Institut G. Roussy
Paris
La Défense
Les Groues
Saint-Denis Pleyel
Bobigny P. Picasso
Line 15 – new lineLine 16 – new lineLine 17 – new lineLine 18 – new lineLine 14 – extensionLine 11 – extension
Paris Metro
2
1
3
CASE STUDYThe Grand Paris project is stimulating new developments around stations
The Grand Paris project to develop
Greater Paris into a sustainable
metropolitan area involves the
construction of four new automatic
metro lines, plus the expansion of
two existing ones. The Grand Paris
timescale includes two phases,
the first of which will be delivered
in time for the Paris 2024 Summer
Olympics. The second phase will
complete by 2030. According to
JLL, the project will double the size
of the metro network by introducing
200 kilometres of new railway lines,
generating approximately 100,000
additional jobs.
The Grand Paris infrastructure
project will improve transport links
to 1 La Défense business district
and will stimulate new real estate
developments around metro stations.
According to JLL, 2 Les Groues, a
site one metro stop from La Défense,
has a development potential of
more than 600,000 square metres.
Expected to complete in the second
Grand Paris phase, Les Groues will
offer highly sought after residential
units as well as retail and office
buildings. The redevelopment offers
regeneration potential for a previously
isolated district.
JLL also reports that 3 Saint-Denis
Pleyel, the biggest station in the new
transportation network where four
new lines will cross, has attracted
two major urban developments: an
office, residential, hotel and retail
project alongside the SNCF railway,
plus an Olympic village occupying
51 hectares along the Seine. Post-
2024 Olympics, the village will be
converted into a mixed-use area
including a fabrication laboratory.
Sources: JLL, Savills Investment Management
2018
22 2322 23
PARIS#3
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
84SCORE
7173
96
83
7984
PARIS IS ONE OF THE MOST LIQUID INVESTMENT MARKETS IN EUROPE, SECOND ONLY TO LONDON, WITH A DIVERSE INTERNATIONAL INVESTOR BASE.
TOP 1O FOR INTERCONNECTION
TOP 1O FOR INFRASTRUCTURE
TOP 1O FOR INNOVATION
TOP 1O FOR INVESTMENT
Source: Savills Investment Management
AMSTERDAM ZUID TRAIN STATION
Vondelpark
Rembrandt Park
Amstelpark
Frankendael Park
AMSTERDAM CITY CENTRE
VALLEY
Mixed-use complex featuring green, terraced towers including of�ces, apartments retail and cultural offerings
Space for nearly 2,000 bicycles and hundreds of cars
HOURGLASS
Mixed-use building including multi-tenant of�ces and a long-term-stay hotel
Shopping, dining and parking space
THE GEORGE AND THE GUSTAV
Nearly 200 total residential units across two adjacent complexes
Green and sustainable features such as rainwater collection
EUROPEAN MEDICINES AGENCY
Soon-to-be new home to the European Medicines Agency (EMA) after Brexit-related relocation from London
Of�ce space and conference centre
The goal is a sustainability label that exceeds the BREEAM quality mark
A
A
D
B
C
D
TO AMSTERDAM AIRPORT
CB
A10 HIGHWAY
A10 HIGHWAY
Amsterdam Metro
CASE STUDYThe Zuidas financial district is evolving into a sustainable urban hub
The Zuidas business district,
Amsterdam’s main financial centre,
is undergoing major development
to cope with growing demand for
office and residential space, and to
ease pressure on public transport.
Zuidas is increasingly becoming
an urban hub and residential area,
with 300,000 sqm of office space,
400,000 sqm of facilities and 7,000
new homes expected over the next
few years.
Sustainability is playing a key role in
the district’s evolution. Amsterdam’s
energy and environmental agenda
calls for reducing per capita energy
use by 20% between 2013 and
2020. Therefore, many new office
and mixed-use buildings will be
BREEAM certified upon completion.
Zuidasdok, the district’s largest
infrastructure project, will begin in
2019. The project will make part of the
A10 highway subterranean to
allow for the expansion of the
Amsterdam Zuid train station.
The train station will benefit from a
public transport terminal, additional
tracks and greenery. The number
of travellers passing through the
station is expected to grow from
approximately 80,000 today to up to
300,000 by 2030.
2018
24 2524 25
AMSTERDAM #4
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
77SCORE
8381
7170
7774
SUSTAINABILITY IS PLAYING A KEY ROLE IN THE ZUIDAS BUSINESS DISTRICT'S EVOLUTION INTO AN URBAN HUB.
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
TOP 1O FOR INNOVATION
TOP 1O FOR INVESTMENT
NO.1 FOR INFRASTRUCTURE
TOP 1O FOR INTERCONNECTION
TOP 1O FOR INSPIRATION
2018
26 2726 27
BERLIN #5
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
76SCORE
80
76
81
71
72 70
Source: Savills Investment Management
961
21
96a1
158
2
15996
100
100
113
96a
OBERSCHÖNEWEIDE
PRENZLAUER
CHARLOTTENBURG
FRIEDENAU
KREUZBERG
NEUKÖLLN
Alexanderplatz
Tiergarten
Tempelhofer Feld
Botanical Garden
Britzer Garten
Treptower Park
Landschaftspark Herzberge
Volkspark Friedrichshain
EUROPACITY
2
1
MEDIASPREE
ADLERSHOF
3
TO BERLIN TEGEL AIRPORT
BERLIN BRANDENBURG AIRPORT
BERLIN'S HIGH TECH AND SERVICE-SECTOR BOOM HAS LED TO DYNAMIC ECONOMIC GROWTH ASSOCIATED WITH A NOTABLE DECREASE IN UNEMPLOYMENT.
CASE STUDYAdlershof, Mediaspree and Europacity
Berlin’s innovation and modern digital infrastructure are increasingly attracting talent, stakeholders and, in turn, investment for the city. For example, in 2017 Berlin-based companies accounted for the majority of investment in newly launched businesses in Germany, which overall jumped by 88% year on year, according to EY.
Berlin’s dynamic growth has had a positive impact on its real estate market. Areas such as 1 Adlershof, 2 Mediaspree and 3 Europacity
have benefitted from availability of developable land, increasing demand for offices and strong transport links.
Adlershof is known as ‘the city of science, technology and media.’ The area covers around 420 hectares and hosts six Humboldt University of Berlin departments. Ten non-university research institutes are also part of this innovation centre.
At the end of 2017, almost 1,100 companies were based in Adlershof, employing almost 18,000. The urban district is forecast to grow further, with insurer Allianz set to move into its newly built, Aldershof-based campus in 2019.
Development of Mediaspree initially began in the 1990s and now spans 180 hectares in total. Since the beginning of the 2000s, the area between Berlin Ostbahnhof (Berlin East) station and Warschauer Strasse has been built up. This location has attracted a number of well-known companies such as Zalando and Mercedes Benz.
According to CA Immo, Europacity spans some 40 hectares and is directly linked to Berlin Hauptbahnhof, the city’s central railway station. A number of office and residential properties have already been completed in this new urban district.
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
TOP 1O FOR INNOVATION
TOP 1O FOR INSPIRATION
TOP 1O FOR INTERCONNECTION
2018
28 2928 29
DUBLIN#6
10 mins
DOCKLANDS(WESTERN
COMMUTER BELT)
PEARSE STATION(SOUTH DUBLIN SUBURBS,
SOUTH EAST IRELAND)
BELFAST)
DUBLIN LANDINGS
WeWork will lease almost 10,000 sqm of of�ce space next to the new Central Bank of Ireland headquarters
Ongoing redevelopment of Dublin Landings to include 250+ luxury apartments, restaurants, green space and other amenities
1
4
2
TO DUBLINAIRPORT
GEORGE’S DOCK
MARLBOROUGH
O’CONNELLGPO
MAYOR SQUARE - NCI
Connolly
THE POINT
PEARSE
CONNOLLY
GRAND CANALDOCK STATION
ST STEPHEN’S GREEN
SPENCER DOCK
3Arena
Bolands Quay
IFSC
St Stephen’s Green
Capital Dock
TRINITYCOLLEGE
BORD GAIS
ENERGYTHEATRE
TARA STREETSTATION
DUBLINPORT FERRY TERMINAL 3
5
3
2
Dublin transport
DART/ Commuter Rail
LUAS Red Line
LUAS Green Line
CUSTOM HOUSE QUAY
Dublin City Council aims to construct a 250-metre white-water kayak course and a public lido at George’s Dock
The council’s Custom House Quay of�ces would be converted into facilities for the leisure developments
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
76SCORE77
92
67
7272 71
IRELAND'S POSITIVE GROWTH OUTLOOK, LOW TAX RATES AND FLEXIBLE LABOUR LAWS MAKE DUBLIN AN EASY TARGET FOR REAL ESTATE INVESTMENT.
CASE STUDYThe Dublin Docklands
The Dublin Docklands area has
continued to transform into a
financial hub, starting with the 1 International Financial
Services Centre (IFSC). According
to the Dublin City Council, the city is
home to 9 of the top 10 technology
companies globally.
Less than a 30-minute walk from 2 St Stephen’s Green, the
Docklands is increasingly becoming
a place to live as well as work.
Soon, the 3 3Arena will have other
attractions in its midst, including
several mixed-use developments
bringing residents and rejuvenation
to the business district.
The area surrounding Grand Canal
Dock is at the heart of the Dublin
Docklands’ transformation into a
digital hub. Google recently acquired
the entirety of 4 Bolands Quay on
Grand Canal Docks, nicknamed
Silicon Docks, for approximately
EUR 300 million. The development
will comprise cultural and dining
space as well as offices and
apartments.
Neighbouring 5 Capital Dock is
being built up simultaneously. In
addition to three office buildings,
development plans include luxury
apartments with access to cinema
rooms and winter gardens; a public
park and square; retail units and
foot bridges across the river. Office
tenants will include J.P. Morgan,
which announced its move to
the Docklands after the Brexit
referendum.
Source: Savills Investment Management
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
TOP 1O FOR INFRASTRUCTURE
TOP 1O FOR INCLUSION
Rosenheimer Str.
Anzinger Str.
Asc
hhei
mer
Str
Fried
enstr
aße
Orlean
sstra
ße
Piusplatz
Kustermannpark
2R
MUNICH EAST
CONCERT HALL
Residential space
Working space
Living space
Green space
Werksviertel München
Source: Savills Investment Management
CASE STUDYWerksviertel München
Munich has been experiencing
strong economic and population
growth over recent years. Oxford
Economics expects this growth to
continue, resulting in further demand
for commercial and residential real
estate.
Due to a number of ongoing or
already completed conversions of
former industrial areas, brewery
locations, container terminals or
generally underused areas such
as Theresienhöhe, Arnulfpark,
Hirschgarten and Nockherberg, there
is limited brownfield land available
for redevelopment. Werksviertel
München, a 39.5-hectare
development area close to the city’s
second most important railway
station, München Ost (Munich East),
is one of the few brownfield sites left
for redevelopment.
About EUR 1.5 billion will be invested
in Werksviertel, according to local
media. Upon completion in 10-15
years, about 3,000 residents will call
Werksviertel home.
A number of notable office
developments, such as Highrise
One and Atlas along Rosenheimer
Strasse, are also part of the project
and should be delivered to the market
this year. The office developments
could attract more than 12,500
employees. The mixed-use district
will offer shopping as well as leisure,
sports and cultural facilities, including
cinemas and a new concert hall.
2018
30 3130 31
MUNICH#7
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
76SCORE
68
7475
68
7975
MUNICH’S ECONOMIC STRENGTH AND HIGH QUALITY OF LIVING MEAN BOTH ITS COMMERCIAL AND RESIDENTIAL PROPERTY MARKETS HAVE EXPERIENCED EXCESS DEMAND FOR YEARS.
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
NO.1 FOR INFRASTRUCTURE
TOP 1O FOR INTERCONNECTION
NO.1 FOR INTERCONNECTION
TOP 1O FOR INNOVATION
TOP 1O FOR INVESTMENT
M4
M3
M40
M20M25
M11
M25
Proposed East-West Rail (Phase 1)
Golden triangle
Brain belt
Railway
Key
Motorway
Proposed East-West Rail (Phase 2)
MILTON KEYNES
OXFORD
LONDON
CAMBRIDGE
CASE STUDYThe golden triangle, brain belt and East-West Rail
Oxford is known for its car
manufacturing industry, as well
as the renowned University of
Oxford. Drawing on both, the city
is increasingly becoming a leader
in innovation. For example, one of
the forefront autonomous driving
technology firms, Oxbotica, is based
in the city. Oxford represents the
western point of the golden triangle
of leading research universities in
the UK.
Oxford also sits at the western end
of the new ‘brain belt’, which links
Oxford to Cambridge and which the
UK government has highlighted as
‘one of the most significant growth
corridors in the country.’ Reflecting
this, in the autumn 2017 budget, the
chancellor announced that 1 million
new homes would be built along this
corridor, starting with a deal to build
100,000 in and around Oxford by
2031.
There are also plans for an East-
West Rail that will ultimately link
Oxford and Cambridge. The western
section – scheduled to complete
first, around 2024 – is planned to run
between Oxford and Milton Keynes.
The city is currently 50 minutes west
of London by train, and served by
two main stations, one in the city
centre plus a more recently opened
station to the north.
2018
32 3332 33
OXFORD SITS AT THE WESTERN END OF THE NEW 'BRAIN BELT' GROWTH CORRIDOR, AND REPRESENTS THE WESTERN POINT OF THE GOLDEN TRIANGLE OF LEADING UK RESEARCH UNIVERSITIES.OXFORD
#8
TOP 1O FOR INNOVATION
TOP 1O FOR INCLUSION
TOP 1O FOR INSPIRATION
Source: Savills Investment Management
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
75SCORE
81
91
6364
78
65
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
WEIL AM RHEIN
RIEHEN
GRENZACH-WYHLEN
BIRSFELDEN
MUTTENZMÜNCHENSTEIN
REINACH
BOTTMINGENOBERWIL
BINNINGEN
ALLSCHWIL
HÉGENHEIM
SAINT-LOUIS
HÉSINGUEHUNINGUE
VILLAGE-NEUF LÖRRACH
Wiese
St. Johann
Gotthelf
Vorstädte
Matthäus
Klybeck
Hirzbrunnen
Kleinhüningen
Rosental
Wettstein
Breite
St. Alban
Gundeldingen
Bruderholz
Iselin
ClaraAltstadt Klein-basel
Altstadt Grossbasel
Bachletten
Am Ring
GATEWAY BASEL NORD
1
Transport corridors
North Sea – Mediterranean Corridor (railway)
Rhine-Alpine Corridor (road)
Rhine-Alpine Corridor (railway)
2018
34 3534 35
BASEL #9
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
75SCORE
79
86
65
70
7469
BASEL IS A LEADER IN THE CHEMICAL AND PHARMACEUTICAL INDUSTRY, AND HAS ONE OF THE HIGHEST PATENT DENSITIES IN EUROPE.
Basel is well located in the tri-
border region of Switzerland,
France and Germany. The city
is the most important logistics
location in Switzerland, located
along the European freight
corridor.
A new tri-modal transhipment
terminal called 1 Gateway
Basel Nord will be developed at
the intersection of rail, road and
Rhine. This new logistics hub will
be constructed in three phases,
and more than EUR 200 million will
be invested through 2023. After
completion, the transhipment
capacity could reach 390,000
standard containers per year.
Innovation is a key driver of the
city’s success. Basel is a leader in
the chemical and pharmaceutical
industry, and has one of the
highest patent densities in Europe.
According to Initiative Life
Sciences Cluster Region Basel,
the city has the highest number
of pharmaceutical sector
patent applications per million
inhabitants globally, and employs
33,000 people in the life sciences
sector. More than 700 life sciences
companies have settled in the
region.
Basel also boasts a high standard
of living and purchasing power,
making it attractive to international
talent. Around 70,000 cross-
border commuters from France
and Germany travel to work in
the Basel region every day, and
40,000 expats live there.
Basel: strategically located in a tri-border region
Source: Savills Investment Management
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
TOP 1O FOR INNOVATION
TOP 1O FOR INCLUSION
TOP 1O FOR INSPIRATION
2018
36 3736 37
STOCKHOLM #10
Demand for large data centres
in good locations has risen
significantly over the past five
years, Savills reports. Since data
is the most mobile commodity
on earth, companies can source
the ideal location for their data
centre, wherever that might be in
the world.
Sweden is an attractive location
for data centres due to its naturally
low temperatures, which allow
for natural cooling, as well as
its strong digital connectivity,
transport infrastructure, local
renewable energy resources and
low country and political risk. This
has led to information technology
giants such as Google, Facebook
and Apple, with headquarters
in Silicon Valley, to choose the
Nordics as a location to expand
their data centre facilities.
The Swedish capital is considered
one of Europe’s most important
tech communities. In Sweden,
there are currently 90 data centres,
the majority of which are located
in Stockholm. Furthermore,
Stockholm benefits from strong
accessibility and connectivity
due to its international airport,
port, rail, metro and motorway
networks. Savills has produced
a benchmark to identify the best
European locations for investment
in data centres. The Nordic
countries rank exceptionally well,
with Sweden ranked second after
Norway in the 2018 benchmark.
Stockholm data centre concentration and transport network
E18
E4
E18
E18
E20
E4
SOLLENTUNA
HUDDINGE
FLEMINGSBERG
ÄLTA
BOO
TYNNINGÖ
ÅKERSBERGA
VARMDON
VALLENTUNAROSERSBERG
HILLESHÖG
14
4
2
2
PORT OF STOCKHOLM
STOCKHOLM CENTRAL STATION
TO STOCKHOLM
AIRPORT
1
1
1
1
Sources: Data Center Map, Savills Investment ManagementNotes: numbers in blue circles represent number of data centres in the area; seven Stockholm data centres are not featured on this map.
INFRASTRUCTUREINTERCONNECTIONINCLUSION
INSPIRATIONINSPIRATIONINNOVATION
INSPIRATIONINNOVATIONINVESTMENT
74SCORE
65
72
68
7373
77
STOCKHOLM IS ONE OF EUROPE’S MOST IMPORTANT TECH COMMUNITIES.
Infrastructure
Current Infrastructure
Governance
Infrastructure Spending
Future Population
Interconnection
Connectivity
Commuting
Transport Infrastructure
Improvements
Magnet & Pollution
Local Connectivity
Inclusion
Participation
Diversity
Maneuvreability
Magnet & Purchasing Power
Inspiration
Liveability
Culture
Engagement
Parks & Cafes
Arts Sector Strength
Innovation
Resources
Activity
Patents
InvestmentCommercial Real Estate Score
Wealth
Population Growth
Property Activity
TOP 1O FOR INFRASTRUCTURE
TOP 1O FOR INNOVATION
TOP 1O FOR INVESTMENT
About Savills Investment Management
Savills Investment Management is an international real estate investment manager with offices in Amsterdam, Copenhagen, Frankfurt, Hamburg, Hong Kong, Jersey, London, Luxembourg, Madrid, Milan, Munich, Paris, Seattle, Shanghai, Singapore, Stockholm, Sydney, Tokyo and Warsaw.
As of 31 December 2017, Savills Investment Management managed total assets of around EUR 16.4 billion.
Savills Investment Management is the brand name for entities in the Savills Investment Management group, including Savills Investment Management LLP, Savills Investment Management (UK) Ltd, Savills Investment Management (Luxembourg) Sàrl, Savills Investment Management (Jersey) Limited, Savills Investment Management SGR SpA, Savills Fund Management GmbH, Savills Investment Management KVG GmbH, Savills Investment Management Pte Ltd, Savills Investment Management Asia Limited, Savills Investment Management (Hong Kong) Limited, Savills Investment Management Inc and Savills Investment Management (Australia) PTY Limited. Savills Investment Management LLP is a limited liability partnership registered in England No: OC306423 regulated by the Financial Conduct Authority.
Savills Investment Management LLP is a limited liability partnership registered in England No: OC306423 regulated by the Financial Conduct Authority.
Important Notice
This document has been prepared by Savills Investment Management LLP, which is authorised and regulated by the Financial Conduct Authority (FCA) under registration number 615368. Property is not a financial Instrument as defined by the Market in Financial Instrument Directive under European regulation; consequently, the direct investment into and the management of property is not regulated by the FCA. The registered office is at 33 Margaret Street, London W1G 0JD. This document may not be reproduced, in whole or in part, in any form, without the permission of Savills Investment Management. To the extent that it is passed on care must be taken to ensure that this is in a form that accurately reflects the information presented here.
Whilst Savills Investment Management believes that the information is correct at the date of this document, no warranty or representation is given to this effect and no responsibility can be accepted by the Manager to any intermediaries or end users for any action taken based on the information. As Savills Investment Management and its subsidiaries operate and manage funds which invest in property, this research is not represented as being impartial. Property can be difficult to sell and it may be difficult to realise investments when desired.
This is a marketing communication and it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and it is not subject to any promotion on dealing ahead of the dissemination of investment research. Certain statements included in this outlook are forward looking and are therefore subject to risks, assumptions and uncertainties that could cause actual markets to differ materially from those forecast or implied because they relate to future events. Consequently, the actual performance of any investments could differ materially from expectations based on our forward-looking statements. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements that speak only at their respective dates.
All rights reserved by Savills Investment Management LLP.
savillsim.com
DYNAMICCITIES.SAVILLSIM.COM
INSPIRATION
INCLUSION
INNOVATIONINFRASTRUCTURE
INTERCONNECTION
INVESTMENT