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 Q3 and Q4 2016.
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.
In the model, each subcategory is weighted equally. The overall score is based on a geometric average of the underlying subcategories’ statistical output, which is normalised and presented as a score between 0 and 100. As such, the overall score may differ from the geometric average of the adjusted numbers presented.
*City insights sourced from 2thinknow : City Benchmarking Data
Defined by a series of wealth indicators, current and future real estate investment activity and presence of green-rated buildings, including sustainable buildings that can mitigate energy and water price increases as well as legislative risk
Defined by technology, including broadband and mobile networks, human capital, government research institutions and risk measures relating to doing business and taking on credit
Defined by technological connectivity such as broadband and mobile infrastructure, spread of within-city transport options, national and global interconnectedness and congestion
Defined by culture, ethnicity, religion, age, ability, gender, sexuality or any other demographic, inclusion encourages successful cities by promoting diversity
Defined by the intensity of cultural amenities such as museums, theatres and arts-related groups, and number of cafes and green spaces
Defined by the creation of new ideas, methods or products, including factors such as number of patents; start-ups; top-tier universities; and interest groups related to science, business and innovation
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The final Dynamic Cities index includes 60 inputs across 6 categories. The inputs range from conventional commercial real estate factors to wider urban economics indicators.
Europe stands among the most urbanised regions worldwide. Given the predicted growth of disruptive technology, it becomes increasingly vital to identify those cities that are likely to show resilience to change.
- Rising employment supports offices, while wealth creation helps boost consumer expenditure and the retail sector, leading to demand for logistics networks
- All three property sectors – office, retail and industrial – benefit from these characteristics