2018 Savills Investment Management
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2018
2018
2018
CONTACTS
PREFACE
researchandstrategy@savillsim.com
Kiran Patel
Global Chief Investment Officer
Irfan Younus
Head of Research, Europe
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.
Nicole Bångstad
Regional focus: Nordics
The Savills Investment Management Dynamic Cities The Dynamic Cities project allows investors to choose
index incorporates cities’ longer-term upwards growth cities where most people want to work, rest and
Judith Fischer potential rather than focus on the one- to two-year, play. That can only be good for long-term real estate
Regional focus: Benelux
shorter-term real estate cycle. investment.
Using 60 indicators across 6 subcategories, Savills All three property sectors - office, retail and industrial -
Benedict Lai Investment Management has identified London, benefit from these characteristics. Rising employment
Regional focus: Asia-Pacific Cambridge, Paris, Amsterdam and Berlin as the top helps support the office sector. Wealth creation is a
five European cities for real estate investment. positive for growing consumer expenditure, benefitting
the variety of retail subsectors. Together with structural
These winning cities are enjoying infrastructure change in the form of e-commerce and trends in last-
Victoria Ormond
Regional focus: Spain, United Kingdom investments and well-developed knowledge networks. mile delivery, the demand for the industrial sector can
VISIT THE WEBSITE They are supported by a backdrop of universities and only be positive.
enterprise that are influencing innovation.
Andreas Trumpp The cities boast a global talent pool and have
Regional focus: Germany, Poland KIRAN PATEL
strong cultural amenities. Not only does that retain a
workforce, but it also continues to attract highly skilled Global Chief Investment Officer
labour, generating innovation that creates wealth over Savills Investment Management
Hilary Waterman the longer term.
Regional focus: Ireland
2 3
dynamiccities.savillsim.com
Contents 2018
06. 12.
Top 40 Why dynamic cities
dynamic cities matters for commercial
real estate
08.
Methodology
10.
14 .
What makes a
dynamic city
Future proofing
cities through ESG
16. LONDON
• Page 18
CAMBRIDGE
DUBLIN
• Page 28
MUNICH
2018 top 10 • Page 20 • Page 30
dynamic cities PARIS
• Page 22
OXFORD
• Page 32
AMSTERDAM BASEL
• Page 24 • Page 34
BERLIN STOCKHOLM
• Page 26 • Page 36
4 5
TOP 40
2018
DYNAMIC CITIES
RANK 2018 RANK 2017 CITY COUNTRY RANK 2018 RANK 2017 CITY COUNTRY
1 1 London England 21 17 Barcelona Spain
2 3 Cambridge England 22 18 Brussels Belgium
3 2 Paris France 23 20 Geneva Switzerland
4 4 Amsterdam The Netherlands 24 22 Bern Switzerland
5 5 Berlin Germany 25 23 Prague Czech Republic
6 7 Dublin Ireland 26 28 Helsinki Finland
7 6 Munich Germany 27 26 Hamburg Germany
8 14 Oxford England 28 29 Reykjavik Iceland
9 15 Basel Switzerland 29 27 Manchester England
10 8 Stockholm Sweden 30 - Gothenburg Sweden
11 10 Zurich Switzerland 31 40 Newcastle upon Tyne England
12 9 Edinburgh Scotland 32 34 Milan Italy
13 16 Lausanne Switzerland 33 31 Belfast Northern Ireland
14 19 Copenhagen Denmark 34 - Cardiff Wales
15 24 Luxembourg City Luxembourg 35 - Eindhoven The Netherlands
16 25 Bristol England 36 37 Trondheim Norway
17 21 Frankfurt am Main Germany 37 36 Bergen Norway
18 12 Vienna Austria 38 35 Reading England
19 13 Oslo Norway 39 30 Birmingham England
20 11 Madrid Spain 40 38 Stavanger Norway
6 7
2018
METHODOLOGY
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 CATEGORIES
for 130 cities. These cities include all of the
European capitals as well as cities with a INFRASTRUCTURE INTERCONNECTION INCLUSION
minimum metropolitan area of 250,000 inhabitants Connectivity
and positive forecast population growth.
Digital, local, national and
international connectivity Maneuvreability Diversity
The final index includes 60 inputs across
Governance
6 categories. The inputs range from Current infrastructure Transport infrastructure Ability to travel A composite of
A composite score improvements around a city demographic indicators
conventional commercial real estate factors Includes human and Commuting
of different risk and
to wider urban economics indicators. digital Infrastructure
governance factors Transport infrastructure Factors related to
under execution, in both commuting and congestion
The data behind Dynamic Cities is from a absolute and relative terms
combination of proprietary in-house calculations Future population Infrastructure Participation Magnet & purchasing
as well as publicly available and commercially spending Magnet & pollution power
Captures future Local connectivity Indicators related to the
provided sources. Key data providers human capital Includes number of The degree that a city level of grassroots activity Given that there is generally
include 2thinknow : City Benchmarking transport, energy, Local transport draws people from across demographics a positive correlation
sanitation, digital, indicators less elsewhere who may between a city’s cost
Data, Timetric and Oxford Economics. transport projects
housing, amenities and return home in the future, of living and apparent
Data was collected during Q1 2018. other projects relative to underway combined with pollution attractiveness, spending
population size that may impede walkability power indicators are used to
The model’s six categories are Investment, capture relative affordability
Innovation, Inspiration, Inclusion, INSPIRATION INNOVATION INVESTMENT
Interconnection and Infrastructure. The
Parks & cafes
index works on the basis that top cities for Activity Population growth Wealth
real estate investors demonstrate balanced A composite of the number of high quality
Culture parks and cafes within the city limits A measure of the level of Innovation activity A composite A composite measure of
performance across all of these categories. measure of predicted wealth indicators and driver
The density of cultural demographic changes of commercial real estate
events, local activities and Liveability markets
social entertainment relative
Indicators of contentment
to a city's population
with living in a city
Commercial real Property activity
Resources Patents estate score
A composite indicator of
Engagement Indicators of the strength A composite measure Indicators related to a commercial real estate
Arts sector strength city’s real estate market activity
of resources such as of absolute and relative
The measure of how successful funding or density of patent liquidity and stock of
readily a city’s population The overall strength of a city's
8 arts and culture sectors in universities that promote generation sustainable buildings 9
engages in arts and culture innovation
comparison to other cities
2018
WHAT MAKES A
DYNAMIC CITY
INFRASTRUCTURE INTERCONNECTION INCLUSION INSPIRATION INNOVATION INVESTMENT
WHY IS IT Infrastructure is critical to support Interconnection is necessary to link different players Social and economic theorist Creative environments and pools of Innovation, human capital and technology The innovation, inspiration, inclusion,
IMPORTANT? the sustainable expansion of a and entities within a city and to the wider world. Richard Florida espouses the talented, open-minded individuals are are central to economic growth theory. interconnection and infrastructure
city’s population and physical size. benefit of tolerance, or what he essential to innovation taking hold. that characterise Europe’s dynamic
Without interconnection, inspiration and inclusion labels an ‘open culture premium.’ Innovation is defined as the creation cities contribute to wealth creation,
Governments may use have limited ability to promote the transfer of ideas Florida suggests that the ‘creative of new ideas, methods or things. sustainability and long-term population
infrastructure spending as a tool and drive to innovate. For example, economist An inclusive society promotes class’ generates an ‘aesthetic-amenity growth, all of which are fundamental
to stimulate economic growth and Edward Glaeser highlights the importance of face- freedom of expression, a factor premium’ that culturally enhances Technology, a by-product of innovation, drivers of commercial real estate.
to earmark a city as having future to-face contact to spur creativity, collaboration and of inspiration that makes a city one’s experience of a city and helps enables productivity and capacity for growth.
potential. innovation. more attractive to talent. draw and retain urban populations. Taken together, measures of these six
Strong digital infrastructure Good transport to and within a city helps reduce Lower barriers to entry for human Researcher Allen Scott suggests that Research and development (R&D) ‘i’s’ serve as a guide to the investment
is necessary to both utilise congestion, which carries with it the opportunity capital fosters a diversity of ideas creativity is ‘organically developed,’ and fosters this technological change potential of European cities.
technological advancements and cost of lost time, productivity and utility. and facilitates mobilisation of the Dynamic Cities model includes an and helps to future proof cities.
lead in technological innovation. resources to support entrepreneurial indicator to capture this in the form of
A city that is well-connected physically also activity within cities. self-organised community groups. Although innovation has and will continue
Human and intellectual capital as promotes even development and reduces the to disrupt existing sectors of the economy
a form of infrastructure are crucial risk of spatial mismatch with pockets of high Diversity of experience and - for example, in the case of driverless cars
to supporting the knowledge unemployment. background also facilitates or self-checkout machines in supermarkets
economy. knowledge spillovers and effective - advanced technologies also create
A globally connected city not only reduces human problem solving. new employment categories and offer
capital barriers to entrepreneurship, but also helps potential cost savings and scalability.
that city operate in the global marketplace.
WHAT GOES Dynamic Cities considers energy, Interconnection considers the strength of The underlying Dynamic Cities Dynamic Cities includes indicators This category includes indicators of a The Investment category looks at a series of
INTO IT? sanitation, buildings, transport as linkages within cities, globally and nationally, indicators draw on research related to liveability, culture, city’s resources to innovate. For example, wealth indicators, a city’s current real estate
well as information infrastructure, including the type and variability of transport in showing that cultural and engagement, arts sector strength cities with well-established universities investment activity, its pool of officially
which is gaining in importance. The place and under development. other types of diversity - for as well as parks and cafes. encourage innovation, often help bring green-rated buildings and its real estate
index examines both infrastructure in example, age, sexuality, job research to the commercial realm and pipeline currently under construction.
place and that under development. The index considers walkability as an important type or religion - have a positive In addition to capturing the number promote agglomeration effects.
method of transport as well as a facilitator of correlation with wealth. of green spaces accessible to a
Dynamic Cities also incorporates engagement and interaction between residents community, the category takes into The index considers a city’s absolute number
human and intellectual capital as and businesses, as espoused by urban studies Factors such as strength of account the quality of those spaces and density of patents generated as well as other
forms of infrastructure - for example, theorist Jane Jacobs. public transport to reduce spatial and, therefore, their capacity to inspire. indicators of innovation activity, such as start-ups.
by considering research institutions mismatch are also incorporated.
and forecast population growth. Interconnection also considers other
connectivity indicators such as digital The index examines purchasing
Governance is also taken into account connectivity as well as spaces that promote power rather than cost of living as
as an intangible form of infrastructure interaction and collaboration, such as cafes an indicator of affordability, due
crucial for cities’ long-term performance. and universities. to the strong positive correlation
between diversity and wealth.
HOW IS IT Multichannel retail requires well- Interconnection ultimately fosters innovation, Studies have demonstrated The subfactors included in A strong knowledge economy underpinned Wealth creation, sustainability and long-
VALUABLE TO functioning virtual infrastructure, while supporting the wealth and growth important that inclusion has a positive the Inspiration category are by innovation helps future proof a term population growth are drivers of
COMMERCIAL developments in online shopping for all commercial real estate sectors. causal effect on a region’s important to attract and retain city against structural obsolescence, commercial real estate performance.
REAL ESTATE? and last-mile delivery mean physical income and real estate values. talent, which supports wealth, helping support commercial real estate
infrastructure is increasingly important. In the age of big data, digital connectivity population growth and, in turn, markets over the longer term. Market depth and development
is of growing importance to companies, Making a city more attractive commercial real estate markets. are also important to cities’
Reliable and powerful electricity from retailers to financial institutions. to a wider cohort of firms and Innovation supports the creation of new future investment potential.
supplies are also essential to logistics individuals is likely to increase A weight of literature links the firms, which in turn increases demand for
units that use automation. Agglomeration effects combined with well- demand for commercial and presence of creative groups in an area office space and R&D laboratories.
linked transport foster the development residential real estate. to localised real estate price growth.
Population size influences demand for office of new office and research centres in A city with innovative critical mass also
markets and creates critical mass for retail. cities such as Paris and Berlin. Cross-group engagement also The extent of cultural amenities creates a centripetal force of talent
fosters a diversity of ideas and and green spaces in a city are also attraction, and resulting productivity can
Strong governance is important to Logistics benefits lower-congestion knowledge spillovers, encouraging shown to have a direct correlation lead to wealth and spending power.
support the investment market, facilitating methods of moving goods. innovation and wealth creation, with demand for space.
transactions and supporting investor rights. which is positive for real estate.
10 11
2018
FIGURE 3:
PRIME ANNUAL OFFICES TOTAL RETURN TREND LINES 2000-17 (%)
WHY DYNAMIC
Top 10 cities Top 40 cities Other cities
30
CITIES MATTERS FOR
COMMERCIAL
0
REAL ESTATE -20
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
FIGURE 4:
PRIME ANNUAL LOGISTICS TOTAL RETURN TREND LINES 2000-17 (%)
Top 10 cities Top 40 cities Other cities
30
Wealth and population trends, particularly employment, drive Over the last 20 years, the top 10 dynamic cities have collectively We find that while all cities experience cyclicality,
successful commercial real estate markets. The factors outperformed the EU-28 overall in terms of GDP (figure 1) and dynamic cities demonstrate a stronger upwards
underpinning the Dynamic Cities index are those identified as employment (figure 2), providing a strong backdrop for real estate trend in prime total returns for office, logistics and
able to attract and retain talent, spur innovation and increase performance. This outperformance is not limited to just strong retail.
productivity, which encourage wealth and population growth. economics, however. 0
As illustrated in figures 3-5, for all three commercial
Dynamic Cities index is forward looking, assessing whether By taking the major investible European real estate markets (as real estate markets, the top 10 dynamic cities
cities have the foundations for future strong performance, but reported by PMA, excluding Moscow) and categorising these as demonstrate the strongest upwards trend in prime
their history can illustrate how many of these cities are already a top 10 dynamic city, top 40 dynamic city or neither, we have total returns, followed by the top 40 cities, which
outperforming. analysed the trend of prime annual total returns for the core have a stronger upwards trend than the major -20
commercial real estate sectors since the start of the millennium. investible European markets not in the top 40.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Due to availability of data, we have only analysed
FIGURE 1: FIGURE 2: the prime total returns for a subset of larger cities FIGURE 5:
analysed in our Dynamic Cities index. However,
GDP INDEX 1997-2017 EMPLOYMENT INDEX PRIME ANNUAL HIGH STREET TOTAL RETURN TREND LINES 2000-17 (%)
we might expect the smaller, up-and-coming
Top 10 cities EU - 28 Top 10 cities EU - 28 cities ranked highly by the index – for example, Top 10 cities Top 40 cities Other cities
180 135 Cambridge and Basel – to offer similar enhanced 30
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
0
total returns moderate, identifying those cities that
will outperform over the long term is key. Dynamic
100 100 Cities aims to highlight such cities.
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
-20
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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,
Sources: PMA, Savills Investment Management
Oxford, Basel and Stockholm; 1997=100
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.
12 13
2018
FUTURE
FUTURE PROOFING CITIES
PROOFING THROUGH ESG
ESG
CITIES THROUGH 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.
There is increased awareness of the
need to consider environmental, social
and governance (ESG) factors at both SOCIAL GOVERNANCE
the city and real estate asset levels. ENVIRONMENTAL
Urban planning with ESG in mind Air pollution Green transport infrastructure World Economic Forum research has also Planned environmental and social initiatives will fall
helps make cities more resilient demonstrated links between a city’s growth trends short in cities without good governance structures and
to future shocks, and better able According to the World Health Greener transport contributes significantly to and level of social inclusion. The Dynamic Cities processes in place. Effective governance underpins
to achieve sustained economic Organisation, outdoor air pollution the reduction of city dwellers’ carbon footprint, index examines social inclusion as a driver of urban planning and development, influencing a
growth. At the asset level, optimising caused an estimated 4.2 million ambient air quality and health and wellbeing, entrepreneurialism and innovation via the promotion diversity of city characteristics from levels of bribery and
premature deaths worldwide in 2016. promoting productivity. Dedicated bike routes, of social diversity and interest group participation. corruption; to socio-political impacts such as politically
ESG helps foster growth and
City mayors are unsurprisingly focusing bike hire schemes, wider pavements and efficient organised violence, social conflict, criminality, gangs and
future proof investor returns.
more and more on ambient air pollution public transport systems all increase the ease Social spaces serve as meeting points and sources terrorism; to the need for planning regulations that are
and its effects on citizens’ heath. and safety with which people can commute of inspiration in a city. There are established links equitable, transparent and democratic.
The Dynamic Cities model considers carbon neutrally. Showers, lockers and bike between economic growth and factors that influence
several environmental, social and Particularly impactful to a city’s economic storage are now commonplace in office buildings a city’s inspiration potential, measured by indicators Governance is crucial to ensure a city’s stability, resilience
governance elements that help growth potential are elevated levels of fine across Europe, and proximity to transport hubs such as number of cafes or green spaces, amount and propensity for economic growth. Consequently, the
set cities on paths to sustainable particulate matter (PM2.5). Dynamic Cities increases property values and occupancy rates. of litter or the extent of accessible cultural amenities Savills IM Dynamic Cities Infrastructure category takes
growth. Here, Lucy Auden, ESG incorporates a measure of PM2.5 levels in that encourage social connectivity and knowledge into account governance measures.
Manager at Savills IM, explores its Interconnection category, as increased Increasingly, newly constructed residential blocks spillovers.
which ESG factors are becoming levels of ambient air pollution may inhibit are limiting car parking spaces (with the exception
movement of people, the extent to of disabled access) in cities with sophisticated
increasingly important considerations
which they cross paths with other city public transport systems that can draw citizens
for real estate investment. dwellers as well as their likelihood of away from private vehicles and towards non-car-
sharing ideas and forging connections, based transport. For example, in London, which On average, top 10 Dynamic
impacting a city’s economic growth. has a robust public transport system, the number LONDON IS HOME TO
of cars per household has dropped steadily since City host countries illustrate
ANNUAL MEAN LEVELS OF PM2.5 IN TOP 10 DYNAMIC CITIES 2008, according to Transport for London. OUTSTANDING GREEN
better governance than
SPACES THAT I WANT TO
European average
Low-carbon transport programs are particularly the Western European
20
successful in Northern European cities, which PROTECT, INVEST IN AND
18 average, with a 21% better
benefit from high density, and where cars IMPROVE AS WE AIM TO
16
were not planned as the primary mode of Corruption Perception Index
14
transport. Low-carbon commuting is also BECOME THE WORLD’S
12 score (80.3 vs. 66.4).
linked to improved worker health, wellbeing and FIRST NATIONAL PARK CITY.
ug/m3
10
productivity, with research from the National Cycle
8
Network suggesting a lower number of sick days
Source: Transparency International
6 Mayor of London, Sadiq Khan
4
for office workers who cycle to work.
2
0 The Savills IM Dynamic Cities index considers the
LONDON CAMBRIDGE PARIS AMSTERDAM BERLIN DUBLIN MUNICH OXFORD BASEL STOCKHOLM
benefits of lower-carbon transport as part of its
14 Interconnection measure. 15
Sources: World Health Organisation, Cambridge City Council, Savills Investment Management
2018
2018
TOP 10 Dynamic Cities
Stockholm
10
All of the top 10 cities saw an increase in their Oxford has been earmarked by the UK
overall scores this year, apart from London, government for 100,000 new homes and
which declined by 1 point.1 However, represents the western point of the ‘golden
LONDON comfortably retains the top triangle’ of leading research universities
ranking for the second year running, leading in the UK. The city has moved into the top
the way in all of the 6 categories apart from 5 for Innovation, with strong grassroots
Inclusion, for which it ranks 3rd. participation and a high density of start-ups
relative to population.
CAMBRIDGE moved up one place to 2nd
this year, swapping places with PARIS (3rd), Basel sits in the top 5 for the majority of
which continues to improve in terms of Dynamic Cities wealth indicators and has
underlying scores. Cambridge particularly seen an increase in population growth
outperforms on density of grassroots forecasts. The city is also an Innovation hub,
organisations related to technology and the ranking second for overall density of patents
arts. The city also has the highest density relative to population.
of start-ups relative to population out of the
130 cities included in the index, according to Finally, STOCKHOLM takes the 10th place
2thinknow : City Benchmarking Data. in this year’s index. While this represents a
fall of two places, Stockholm’s overall score
AMSTERDAM and BERLIN maintain their has improved. Furthermore, the Swedish
places in the top 5. DUBLIN moved up capital remains in the top 5 cities for absolute
one place to 6th, and MUNICH down one level of patent generation. 6
place to 7th. Dublin’s population has a high
density of grassroots organisations and a In the top 10 last year, ZURICH and
strong university presence supporting its EDINBURGH fell slightly in the rankings Dublin
improving Innovation indicators. Munich 2 5
for 2018, to 11th and 12th, respectively. 4
also demonstrates improvement on many
indicators.
However, the overall scores for both cities
have improved, as have their performances
Cambridge
in categories such as Innovation and 8
1 Amsterdam Berlin
OXFORD and BASEL, ranked 8th and 9th, Investment.
respectively, are both new entrants into the
Oxford London
top 10 this year.
3
1 See respective city pages for score breakdowns or visit dynamiccities.savillsim.com/city-rankings Paris
to compare scores across cities and categories. 7
9
Munich
16
Basel 17
LONDON
THE LONDON 2018
INFRASTRUCTURE 2050
PLAN INVOLVES MORE
THAN GBP 1 TRILLION
WORTH OF INVESTMENT
COVERING HOUSING, 100 INFRASTRUC
TURE
TRANSPORT, DIGITAL 100 INTERCONNE
CTIO
INFRASTRUCTURE 92 INCLUSION N
AND BASIC SERVICES.
100 INSPIRATIO
N
100 INNOVATIO
N
100 INVESTME
N
T
SCORE
#1 97
NO.1 FOR NO.1 FOR TOP 1O FOR NO.1 FOR NO.1 FOR NO.1 FOR
INFRASTRUCTURE INTERCONNECTION INCLUSION INSPIRATION INNOVATION INVESTMENT
D
ROA
B125 K I NG
AB
BO BA R
T TR
OA
D
A 12
CANNING
TOWN Infrastructure Inspiration
A 13
CASE STUDY
A1
Current Infrastructure Liveability
011
D O CK R OA D
Placemaking in the Greenwich Peninsula area A 13 E A ST I N D I A
A1
A 1020 CUSTOM
Governance
26
LOW E R L EA CRO HOUSE Culture
1
SSI N
G
WESTFERRY BLACKWALL
1
The Greenwich Peninsula is The Elizabeth line, scheduled to open
26
LI M POPLAR EAST Infrastructure Spending
A1
EHO
US INDIA ROYAL
EXCEL Engagement
centrally located in London’s later this year, will improve underground E LI
5
SI L
NK VICTORIA
LONDON
VE
zone 2, one tube stop east of the connectivity to the peninsula. Planning
WEST INDIA A SPE N W AY Future Population
RT
QUAY Parks & Cafes
O
A 1206
W
1 Canary Wharf financial services permission has also been granted for a CANARY
N
WHARF
W
6 London City Cruise Port at Y
A
hub. This formerly undeveloped area BLACKWALL NORTH Arts Sector Strength
is rapidly transforming into a place Enderby Wharf.
TUNNEL
2
GREENWICH
4
CANARY PIER NE A1
Interconnection
HERON
1 WHARF LI 020
QUAYS R
for living and working as well as THE 02 AI
ES
N O RT
H W O O LW I CH ROA D
recreation. At the tip of the peninsula More than 15,000 residential units SOUTH T Connectivity
’
QUAY
IRA WEST
EM Innovation
OA D
sits one of the busiest indoor event are also planned for the area, with MA R NORTH
SILVERTOWN
SH W Commuting
arenas in the world, 2 The O2,
GREENWICH
several of these schemes already A LL
PENINSULA Resources
which will soon also include a new completed. According to the Greater 3 PLACE Transport Infrastructure
London Authority, the redevelopment CALATRAVA
A 1206
designer fashion outlet. Additionally,
A 1206
Improvements Activity
WE
will also include education and health
ST
3 Peninsula Place, the planned GBP MI
LLE
Magnet & Pollution
PA
NN KS
care facilities, film and media studios, AY Patents
R
I
1 billion tower designed by architect 10
ID
E W
UM
MA N
N
A
CROSSHARBOUR 2
W EST F E
O
Santiago Calatrava, will house a new community spaces, a 5K running track W RR
IS
AY Local Connectivity
CH E
A
transport hub, performance venue and and an updated Thames foot and N
H
ST
H
RRY R
JO
Investment
E
cycle path.
RR
BL
winter gardens, complementing office
AC
PEART RE
OA D
OA
KW
7 BROCKLEBANK Inclusion Commercial Real Estate
D
space and other leisure attractions.
AL
U
RETAIL PARK
B
GS
The area at the base of the peninsula Score
L
BY
TU
’S
E
LONDON CITY W AY Participation
A 2203 BLAC
NN
MUDCHUTE
The region is already well connected is already benefiting from the above CRUISE PORT AT 6
EL
BU GSBY ’S W AY Wealth
AP
8
WAY
ENDERBY WHARF RO
placemaking, with the recently opened
P
by tube, bus and boat services AC
H
Diversity
IKEA
7 Brocklebank Retail Park and Transport for London
KW
ISLAND
as well as by the more recent GARDENS GREENWICH
A
Population Growth
A LL
10
4 Emirates Air Line, a cable 8 Ikea Greenwich, which will be London Underground 2
D
Maneuvreability
H R OA
LA NE
Docklands Light Railway W O O LW I C
A 206 Property Activity
car link to the 5 ExCeL London the first full-size store in London in 13 6
WO O LW I CH R OA D
CHARLTON
Magnet & Purchasing
Elizabeth line A 20
years, set to open by the end of 2018. RIVER THAMES Power
exhibitions and convention centre. R RO
AD WESTCOMBE
GA PARK
18 AF
AL 19
TR
Source: Savills Investment Management 06
A2
A 102
CUTTY
SARK2018
CAMBRIDGE IS HOME
TO MORE THAN
CAMBRIDGE
4,700 KNOWLEDGE-
INTENSIVE FIRMS,
EMPLOYING 60,000 INFRASTRU
PEOPLE AND CTUR
E
INTERCON
GENERATING MORE NECT
ION
THAN GBP 12 BILLION 100 INCLUSION
IN REVENUE. 96 INSPIRATION
99 INNOVATI
ON
INVEST
ME
79 N
T
SCORE
#2 66 84
43
TOP 1O FOR NO.1 FOR TOP 1O FOR TOP 1O FOR
INFRASTRUCTURE INCLUSION INSPIRATION INNOVATION
Innovation hubs, transportation nodes and residential developments outside Cambridge city centre Infrastructure Inspiration
Current Infrastructure Liveability
Historically centred around the Just 45 minutes by train from
Cambridge
University of Cambridge, the city London, the city’s connectivity 1 Science Park Governance Culture
of Cambridge is now the base for has further improved with the 4
the largest technology cluster in opening of a second rail station, Infrastructure Spending
6 Cambridge Engagement
Europe. Over 4,700 knowledge- 4 Cambridge North, supporting North station Future Population
intensive firms are located in the innovation hubs in this area. A North West Parks & Cafes
AM
Cambridge E RC
city, employing over 60,000 people possible third station, near the R IV
Arts Sector Strength
and generating more than GBP 12 biomedical research hub south
Interconnection
billion in revenue. of the city, is currently under CAMBRIDGE
INTERNATIONAL
discussion. This could eventually AIRPORT Connectivity
1 3
The Cambridge Science provide links to Milton Keynes and Innovation
Park to the north, 2 Cambridge West Commuting
Oxford. Cambridge Resources
Cambridge
Biomedical Campus to the City Centre Transport Infrastructure
south and 3 West Cambridge The city’s employment growth Improvements Activity
research space for physical and large student population
Magnet & Pollution
sciences and technology are a have led to pressures on housing. Patents
M
few examples of innovation hubs However, pressures are now Local Connectivity
CA
Cambridge
ER
railway station
outside the city centre. According easing, with an average of 2,000 RI
V
Investment
to the University of Cambridge, homes completing each year,
Inclusion Commercial Real Estate
the city has the highest density of including developments such as Score
patent applications relative to UK 5 Trumpington Meadows and Participation
Wealth
population. In fact, this density is 6 North West Cambridge.
Diversity
higher than that of the next four Cambridge Biomedical Population Growth
5 2 Maneuvreability
cities combined. Campus
Trumpington Magnet & Purchasing Property Activity
Meadows Power
20 21
Source: Savills Investment ManagementPARIS
2018
PARIS IS ONE OF
THE MOST LIQUID
INVESTMENT
MARKETS IN
EUROPE, SECOND
INFRASTRU
ONLY TO LONDON, CTUR
E
INTERCON
WITH A DIVERSE NECT
INTERNATIONAL 96 INCLUSION
ION
INVESTOR BASE. INSPIRAT
ION
83 INNOVAT
ION
INVEST
ME
N
84
T
79
SCORE
#3
73 71
84
TOP 1O FOR TOP 1O FOR TOP 1O FOR TOP 1O FOR
INFRASTRUCTURE INTERCONNECTION INNOVATION INVESTMENT
Infrastructure Inspiration
CASE STUDY To Le Bourget Current Infrastructure Liveability
Charles de Gaulle
The Grand Paris project is stimulating new developments Val-d’Oise Airport
Airport
line 17 Governance Culture
around stations
Infrastructure Spending
Engagement
The Grand Paris project to develop site one metro stop from La Défense, line 16
Le Bourget Future Population
Greater Paris into a sustainable has a development potential of Parks & Cafes
RER
metropolitan area involves the more than 600,000 square metres. line 15
Arts Sector Strength
construction of four new automatic Expected to complete in the second
Nanterre Les Groues
metro lines, plus the expansion of Grand Paris phase, Les Groues will 3 Clichy - Montfermeil Interconnection
two existing ones. The Grand Paris offer highly sought after residential 2 Saint-Denis Pleyel Connectivity
timescale includes two phases, units as well as retail and office 1 La Défense Innovation
Bobigny line 11
the first of which will be delivered buildings. The redevelopment offers Commuting
P. Picasso Resources
in time for the Paris 2024 Summer regeneration potential for a previously Transport Infrastructure
Olympics. The second phase will isolated district. Yvelines Improvements
Noisy - Champs Activity
complete by 2030. According to Paris
Magnet & Pollution
JLL, the project will double the size JLL also reports that 3 Saint-Denis Pont de Patents
Pleyel, the biggest station in the new Villejuif Institut Champigny Centre
of the metro network by introducing Sèvres Local Connectivity
200 kilometres of new railway lines, transportation network where four line 18 G. Roussy
generating approximately 100,000 new lines will cross, has attracted Versailles
Seine Investment
additional jobs. two major urban developments: an Chantiers et-Marne Inclusion Commercial Real Estate
Score
office, residential, hotel and retail Participation
line 14
Paris Metro Wealth
The Grand Paris infrastructure project alongside the SNCF railway,
Line 15 – new line Diversity
project will improve transport links plus an Olympic village occupying
Line 16 – new line Population Growth
to 1 La Défense business district 51 hectares along the Seine. Post- Line 17 – new line Maneuvreability
and will stimulate new real estate 2024 Olympics, the village will be Massy Palaiseau Line 18 – new line Property Activity
Magnet & Purchasing
developments around metro stations. converted into a mixed-use area TGV Line 14 – extension
Power
Essonne Orly Airport Line 11 – extension
22 According to JLL, 2 Les Groues, a including a fabrication laboratory. 23
Sources: JLL, Savills Investment Management2018
SUSTAINABILITY
IS PLAYING A KEY
AMSTERDAM
ROLE IN THE ZUIDAS
BUSINESS DISTRICT'S
EVOLUTION INTO INFRASTRU
CTUR
AN URBAN HUB. E
INTERCON
NECT
ION
INCLUSION
INSPIRAT
ION
INNOVAT
ION
INVEST
81 83 ME
N
T
77 SCORE
74
#4 70
71 77
NO.1
TOP 1OFOR
FOR TOP 1O FOR TOP 1O FOR TOP 1O FOR
INTERCONNECTION
INFRASTRUCTURE INSPIRATION INNOVATION INVESTMENT
Infrastructure Inspiration
CASE STUDY Current Infrastructure Liveability
A VALLEY
The Zuidas financial district is evolving into a sustainable Amsterdam Metro
Mixed-use complex featuring Governance Culture
urban hub green, terraced towers including
AMSTERDAM CITY CENTRE offices, apartments retail and Infrastructure Spending
cultural offerings Engagement
The Zuidas business district, Zuidasdok, the district’s largest
Space for nearly 2,000 bicycles Future Population
Amsterdam’s main financial centre, infrastructure project, will begin in and hundreds of cars Parks & Cafes
is undergoing major development 2019. The project will make part of the
Arts Sector Strength
to cope with growing demand for A10 highway subterranean to
B HOURGLASS
office and residential space, and to allow for the expansion of the Interconnection
Mixed-use building including
ease pressure on public transport. Amsterdam Zuid train station. Rembrandt multi-tenant offices and a Connectivity
Park long-term-stay hotel
Zuidas is increasingly becoming Innovation
an urban hub and residential area, The train station will benefit from a Vondelpark
Shopping, dining and parking Commuting
space Resources
with 300,000 sqm of office space, public transport terminal, additional
Transport Infrastructure
400,000 sqm of facilities and 7,000 tracks and greenery. The number Improvements Activity
of travellers passing through the C THE GEORGE AND THE GUSTAV
new homes expected over the next Frankendael
Park Nearly 200 total residential units Magnet & Pollution
few years. station is expected to grow from Patents
across two adjacent complexes
approximately 80,000 today to up to Local Connectivity
Green and sustainable features
Sustainability is playing a key role in 300,000 by 2030. AMSTERDAM ZUID such as rainwater collection
the district’s evolution. Amsterdam’s TRAIN STATION Investment
A Inclusion Commercial Real Estate
energy and environmental agenda
Score
A10 HIGHWAY D EUROPEAN MEDICINES AGENCY
calls for reducing per capita energy
C D Soon-to-be new home to the
Participation
Wealth
use by 20% between 2013 and B A1 European Medicines Agency (EMA) Diversity
0
2020. Therefore, many new office HI
GH
after Brexit-related relocation from
W London Population Growth
and mixed-use buildings will be TO AMSTERDAM AY Maneuvreability
AIRPORT Office space and conference centre
BREEAM certified upon completion. Amstelpark Property Activity
Magnet & Purchasing
The goal is a sustainability label that
Power
exceeds the BREEAM quality mark
24 25
Source: Savills Investment ManagementBERLIN
2018
BERLIN'S HIGH
TECH AND SERVICE-
SECTOR BOOM HAS
LED TO DYNAMIC
ECONOMIC GROWTH INFRASTRU
CTUR
ASSOCIATED WITH A E
INTERCON
NECT
NOTABLE DECREASE INCLUSION
ION
IN UNEMPLOYMENT.
INSPIRAT
ION
INNOVAT
ION
81 INVEST
ME
N
80
T
76 SCORE
#5 71
72 70
76
TOP 1O FOR TOP 1O FOR TOP 1O FOR
INTERCONNECTION INSPIRATION INNOVATION
Infrastructure Inspiration
CASE STUDY 96 Current Infrastructure Liveability
159
Adlershof, Mediaspree and Europacity PRENZLAUER
TO BERLIN TEGEL
AIRPORT
Governance Culture
2
Berlin’s innovation and modern digital At the end of 2017, almost 1,100 Infrastructure Spending
1 EUROPACITY Engagement
infrastructure are increasingly attracting companies were based in Adlershof,
talent, stakeholders and, in turn, employing almost 18,000. The urban Volkspark Future Population
Friedrichshain
Landschaftspark
Parks & Cafes
investment for the city. For example, district is forecast to grow further, with Alexanderplatz Herzberge 158
in 2017 Berlin-based companies insurer Allianz set to move into its newly 1 Arts Sector Strength
CHARLOTTENBURG
accounted for the majority of investment built, Aldershof-based campus in 2019. 2
Interconnection
in newly launched businesses in Tiergarten 96a
1
Germany, which overall jumped by 88% Development of Mediaspree initially Connectivity
2 MEDIASPREE
year on year, according to EY. began in the 1990s and now spans 180 Innovation
hectares in total. Since the beginning KREUZBERG
Commuting
Resources
Berlin’s dynamic growth has had of the 2000s, the area between Berlin Transport Infrastructure
a positive impact on its real estate Ostbahnhof (Berlin East) station and Improvements Activity
market. Areas such as 1 Adlershof, Warschauer Strasse has been built up. 1 96
Treptower Park
2 Mediaspree and 3 Europacity Magnet & Pollution
This location has attracted a number of Patents
NEUKÖLLN
have benefitted from availability of well-known companies such as Zalando 100
Local Connectivity
developable land, increasing demand and Mercedes Benz. Tempelhofer Feld
FRIEDENAU
for offices and strong transport links. Investment
According to CA Immo, Europacity OBERSCHÖNEWEIDE
Inclusion Commercial Real Estate
Adlershof is known as ‘the city of spans some 40 hectares and is directly 100
Score
96a Participation
science, technology and media.’ The linked to Berlin Hauptbahnhof, the city’s Wealth
area covers around 420 hectares central railway station. A number of Botanical Garden
Diversity
ADLERSHOF
and hosts six Humboldt University of office and residential properties have Population Growth
3 Maneuvreability
Berlin departments. Ten non-university already been completed in this new
113
research institutes are also part of this urban district. Magnet & Purchasing Property Activity
innovation centre. Power
BERLIN BRANDENBURG
26 Britzer Garten AIRPORT 27
Source: Savills Investment ManagementDUBLIN
2018
IRELAND'S POSITIVE
GROWTH OUTLOOK,
LOW TAX RATES AND
FLEXIBLE LABOUR
LAWS MAKE DUBLIN INFRASTRU
CTUR
AN EASY TARGET E
INTERCON
NECT
FOR REAL ESTATE INCLUSION
ION
INVESTMENT.
92 INSPIRAT
ION
INNOVAT
ION
INVEST
ME
N
T
77 SCORE
#6 72
72 71
76
67
TOP 1O FOR TOP 1O FOR
INFRASTRUCTURE INCLUSION
Infrastructure Inspiration
CASE STUDY Dublin transport Current Infrastructure Liveability
DUBLIN LANDINGS
The Dublin Docklands DART/ Commuter Rail
LUAS Red Line
TO DUBLIN
WeWork will lease almost 10,000 sqm of Governance Culture
AIRPORT
LUAS Green Line D O CKL ANDS
(WESTERN
office space next to the new Central Bank of
The Dublin Docklands area has digital hub. Google recently acquired CONNOLLY C OMMU TER BELT)
Ireland headquarters Infrastructure Spending
Engagement
continued to transform into a the entirety of 4 Bolands Quay on Ongoing redevelopment of Dublin Landings
to include 250+ luxury apartments, Future Population
financial hub, starting with the Grand Canal Docks, nicknamed Connolly
BELFAST)
restaurants, green space and other amenities
Parks & Cafes
1 International Financial Silicon Docks, for approximately
GEORGE’S DOCK MAYOR SQUARE - NCI SPENCER DOCK THE POINT
Arts Sector Strength
Services Centre (IFSC). According EUR 300 million. The development
to the Dublin City Council, the city is will comprise cultural and dining IFSC Interconnection
3 3Arena
O’CONNELL
home to 9 of the top 10 technology space as well as offices and
GPO
MARLBOROUGH 1 CUSTOM HOUSE QUAY
DUBLIN
PORT FERRY
TERMINAL 3 Connectivity
companies globally. apartments. Dublin City Council aims to
construct a 250-metre
Innovation
white-water kayak course
Commuting
Resources
Less than a 30-minute walk from Neighbouring 5 Capital Dock is TARA STREET and a public lido at
STATION
George’s Dock Transport Infrastructure
2 St Stephen’s Green, the being built up simultaneously. In 5 Improvements Activity
The council’s Custom
Docklands is increasingly becoming addition to three office buildings, House Quay offices would Capital Dock
Magnet & Pollution
a place to live as well as work. development plans include luxury be converted into facilities Patents
BORD
for the leisure developments
Soon, the 3 3Arena will have other apartments with access to cinema GAIS
ENERGY
Local Connectivity
THEATRE
attractions in its midst, including rooms and winter gardens; a public TRINITY
several mixed-use developments park and square; retail units and
COLLEGE PEARSE
P E ARSE STAT ION
Investment
(SOU TH DUBLIN SUBURBS,
bringing residents and rejuvenation foot bridges across the river. Office
SOU TH E A ST IREL AND)
Inclusion Commercial Real Estate
4 Bolands Quay Score
to the business district. tenants will include J.P. Morgan, Participation
which announced its move to Wealth
The area surrounding Grand Canal Diversity
the Docklands after the Brexit GRAND CANAL Population Growth
Dock is at the heart of the Dublin referendum.
DOCK STATION
10mins Maneuvreability
ST STEPHEN’S
Docklands’ transformation into a GREEN
Property Activity
2
2 St Stephen’s Green Magnet & Purchasing
Power
28 29
Source: Savills Investment Management2018
MUNICH’S ECONOMIC
MUNICH
STRENGTH AND HIGH
QUALITY OF LIVING
MEAN BOTH ITS
COMMERCIAL AND
INFRASTRU
RESIDENTIAL PROPERTY CTUR
E
MARKETS HAVE INTERCON
NECT
ION
EXPERIENCED EXCESS INCLUSION
DEMAND FOR YEARS. INSPIRAT
ION
INNOVAT
ION
INVEST
ME
N
T
79
75 SCORE
75
76
74
#7 68
68
NO.1
TOP 1OFOR
FOR NO.1
TOP 1OFOR
FOR TOP 1O FOR
INTERCONNECTION
INFRASTRUCTURE INNOVATION
INTERCONNECTION INVESTMENT
Infrastructure Inspiration
CASE STUDY Current Infrastructure Liveability
Werksviertel München ße Governance Culture
stra Werksviertel München
ns
Munich has been experiencing About EUR 1.5 billion will be invested r lea Residential space Infrastructure Spending
Engagement
O
strong economic and population in Werksviertel, according to local MUNICH EAST Working space Future Population
growth over recent years. Oxford media. Upon completion in 10-15 ße Parks & Cafes
stra Living space
Economics expects this growth to years, about 3,000 residents will call en
ied Arts Sector Strength
continue, resulting in further demand Werksviertel home. Fr Green space
for commercial and residential real Interconnection
estate. A number of notable office
Connectivity
developments, such as Highrise Innovation
Due to a number of ongoing or One and Atlas along Rosenheimer Commuting
r
Aschheimer St
Resources
already completed conversions of Strasse, are also part of the project
Transport Infrastructure
former industrial areas, brewery and should be delivered to the market CONCERT
HALL Improvements Activity
locations, container terminals or this year. The office developments
Magnet & Pollution
generally underused areas such could attract more than 12,500 Patents
as Theresienhöhe, Arnulfpark, employees. The mixed-use district
Local Connectivity
Hirschgarten and Nockherberg, there will offer shopping as well as leisure,
is limited brownfield land available sports and cultural facilities, including Investment
for redevelopment. Werksviertel cinemas and a new concert hall.
Kustermannpark
2R Inclusion Commercial Real Estate
Piusplatz
Score
München, a 39.5-hectare Participation
development area close to the city’s Wealth
Diversity
Ro
second most important railway
se
Population Growth
n
station, München Ost (Munich East), Maneuvreability
he
im
is one of the few brownfield sites left
er
Magnet & Purchasing Property Activity
St
r.
for redevelopment. Power
30 Anzinger Str. 31
Source: Savills Investment ManagementOXFORD SITS AT THE
OXFORD
2018
WESTERN END OF
THE NEW 'BRAIN BELT'
GROWTH CORRIDOR,
AND REPRESENTS
THE WESTERN POINT INFRASTRU
CTUR
E
OF THE GOLDEN INTERCON
NECT
TRIANGLE OF LEADING INCLUSION
ION
UK RESEARCH
UNIVERSITIES. 91 INSPIRAT
ION
INNOVAT
ION
INVEST
ME
N
81
T
78 SCORE
#8 65 75
64 63
TOP 1O FOR TOP 1O FOR TOP 1O FOR
INCLUSION INSPIRATION INNOVATION
Infrastructure Inspiration
CASE STUDY Current Infrastructure Liveability
Key
The golden triangle, brain belt and East-West Rail
Brain belt Governance Culture
Oxford is known for its car new homes would be built along this Golden triangle Infrastructure Spending
Engagement
manufacturing industry, as well corridor, starting with a deal to build Proposed East-West Rail (Phase 1)
Future Population
as the renowned University of 100,000 in and around Oxford by CAMBRIDGE Proposed East-West Rail (Phase 2) Parks & Cafes
Oxford. Drawing on both, the city 2031. Railway
Arts Sector Strength
is increasingly becoming a leader Motorway
in innovation. For example, one of There are also plans for an East- Interconnection
the forefront autonomous driving West Rail that will ultimately link
MILTON KEYNES Connectivity
technology firms, Oxbotica, is based Oxford and Cambridge. The western Innovation
M11
in the city. Oxford represents the section – scheduled to complete Commuting
Resources
western point of the golden triangle first, around 2024 – is planned to run
Transport Infrastructure
of leading research universities in between Oxford and Milton Keynes. Improvements Activity
the UK.
The city is currently 50 minutes west Magnet & Pollution
OXFORD Patents
Oxford also sits at the western end of London by train, and served by
M25 Local Connectivity
of the new ‘brain belt’, which links two main stations, one in the city
Oxford to Cambridge and which the centre plus a more recently opened M40 Investment
UK government has highlighted as station to the north. Inclusion Commercial Real Estate
Score
‘one of the most significant growth Participation
corridors in the country.’ Reflecting M4 Wealth
LONDON Diversity
this, in the autumn 2017 budget, the
Population Growth
chancellor announced that 1 million Maneuvreability
Magnet & Purchasing Property Activity
Power
M25 M20
32 33
M3
Source: Savills Investment ManagementBASEL
2018
BASEL IS A
LEADER IN THE
CHEMICAL AND
PHARMACEUTICAL
INDUSTRY, AND HAS INFRASTRU
CTUR
ONE OF THE HIGHEST E
INTERCON
NECT
PATENT DENSITIES INCLUSION
ION
IN EUROPE.
INSPIRAT
ION
86 INNOVAT
ION
INVEST
ME
N
79
T
SCORE
74
#9 70
69
75
65
TOP 1O FOR TOP 1O FOR TOP 1O FOR
INCLUSION INSPIRATION INNOVATION
Basel: strategically located in a tri-border region Infrastructure Inspiration
Basel is well located in the tri- According to Initiative Life Liveability
Current Infrastructure
border region of Switzerland, Sciences Cluster Region Basel, VILLAGE-NEUF Transport corridors LÖRRACH
France and Germany. The city the city has the highest number North Sea – Mediterranean Governance Culture
is the most important logistics of pharmaceutical sector Corridor (railway)
WEIL AM RHEIN Infrastructure Spending
Engagement
location in Switzerland, located patent applications per million Rhine-Alpine Corridor
along the European freight inhabitants globally, and employs HÉSINGUE
HUNINGUE 1 (railway) Future Population
Parks & Cafes
corridor. 33,000 people in the life sciences GATEWAY
BASEL Rhine-Alpine Corridor
sector. More than 700 life sciences NORD (road) Arts Sector Strength
Wiese
A new tri-modal transhipment companies have settled in the SAINT-LOUIS Interconnection
Kleinhüningen
terminal called 1 Gateway region.
Connectivity
Basel Nord will be developed at
RIEHEN Innovation
the intersection of rail, road and Basel also boasts a high standard
Commuting
Klybeck
Rhine. This new logistics hub will of living and purchasing power, Resources
Transport Infrastructure
be constructed in three phases, making it attractive to international
St. Johann Rosental Improvements Activity
and more than EUR 200 million will talent. Around 70,000 cross-
Hirzbrunnen
be invested through 2023. After border commuters from France Matthäus Magnet & Pollution
HÉGENHEIM Patents
completion, the transhipment and Germany travel to work in
Local Connectivity
capacity could reach 390,000 the Basel region every day, and Altstadt
Clara
Iselin
standard containers per year. 40,000 expats live there. Klein-
basel Investment
Altstadt Wettstein Inclusion Commercial Real Estate
Innovation is a key driver of the Am Grossbasel Score
Ring
Gotthelf Breite BIRSFELDEN GRENZACH- Participation
city’s success. Basel is a leader in WYHLEN Wealth
Vorstädte
the chemical and pharmaceutical Diversity
industry, and has one of the Population Growth
Bachletten Maneuvreability
highest patent densities in Europe.
ALLSCHWIL St. Alban
Magnet & Purchasing Property Activity
Gundeldingen
Power
34 35
Source: Savills Investment Management2018
STOCKHOLM
IS ONE OF
EUROPE’S MOST
IMPORTANT TECH
STOCKHOLM
COMMUNITIES. INFRASTRU
CTUR
E
INTERCON
NECT
ION
INCLUSION
INSPIRAT
ION
INNOVAT
ION
INVEST
ME
N
T
77 SCORE
74
73
#10 73 72
68 65
TOP 1O FOR TOP 1O FOR TOP 1O FOR
INFRASTRUCTURE INNOVATION INVESTMENT
Stockholm data centre concentration and transport network Infrastructure Inspiration
ROSERSBERG VALLENTUNA Current Infrastructure Liveability
Demand for large data centres The Swedish capital is considered
in good locations has risen one of Europe’s most important 1
TO E18
Governance Culture
STOCKHOLM
significantly over the past five tech communities. In Sweden, E4 AIRPORT
years, Savills reports. Since data there are currently 90 data centres, Infrastructure Spending
ÅKERSBERGA Engagement
is the most mobile commodity the majority of which are located Future Population
on earth, companies can source in Stockholm. Furthermore, Parks & Cafes
the ideal location for their data Stockholm benefits from strong
SOLLENTUNA Arts Sector Strength
centre, wherever that might be in accessibility and connectivity
Interconnection
the world. due to its international airport,
port, rail, metro and motorway 4 Connectivity
Sweden is an attractive location networks. Savills has produced E18 E18 Innovation
for data centres due to its naturally HILLESHÖG Commuting
a benchmark to identify the best TYNNINGÖ Resources
low temperatures, which allow European locations for investment Transport Infrastructure
for natural cooling, as well as in data centres. The Nordic
2
E4
PORT OF
STOCKHOLM Improvements Activity
E20
its strong digital connectivity, countries rank exceptionally well, Magnet & Pollution
transport infrastructure, local Patents
with Sweden ranked second after STOCKHOLM
CENTRAL BOO
renewable energy resources and
low country and political risk. This
Norway in the 2018 benchmark.
2
STATION
14 VARMDON Local Connectivity
Investment
has led to information technology 1
Inclusion Commercial Real Estate
giants such as Google, Facebook Score
and Apple, with headquarters 1 Participation
Wealth
in Silicon Valley, to choose the ÄLTA
Diversity
Nordics as a location to expand Population Growth
HUDDINGE Maneuvreability
their data centre facilities.
Magnet & Purchasing Property Activity
Power
FLEMINGSBERG
1
36 37
Sources: Data Center Map, Savills Investment Management
Notes: numbers in blue circles represent number of data centres in the area; seven Stockholm data centres are not featured on this map.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.
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