Metro Manila ranked number 12 among 131 cities in a global index of the most dynamic real estate markets and urban economies in the world, according to the “City Momentum Index 2019: Technology, Transparency and Transformation” study published by investment management group JLL.
The study evaluated 131 cities based on socio-economic and commercial real estate momentum. Socio-economic momentum included variables such as the recent percentage changes in city GDP, population, air passengers and corporate headquarters presence, while commercial real estate momentum assessed recent and projected percentage changes in office net absorption, office rents, retail rents and hotel rooms, investments volumes and other factors.
Manila’s ranking improved this year from last year’s 18th place in the 2018 CMI, indicating that the city remains a vibrant destination for investors. The country’s skilled workforce, English language skills, tax incentives and infrastructure boom are other factors that contributed to Manila’s dynamism.
The index stated that the government has committed to an extensive infrastructure building program involving more than 2,000 projects. These are expected to ease congestion, reduce the impact of climate change, boost power reliability and redevelop certain areas to address the challenges presented by the expanding population in the city and elsewhere.
“Manila is known for its business process outsourcing (BPO) and foreign companies [that] continue to be attracted by the skilled workforce, English language skills and tax incentives,” said the report.
Manila outranked major Asian cities like Beijing (13th), Shanghai (14th) and Bangkok (18th). The top cities in the 2019 CMI include Bengaluru, Hyderabad, Hanoi, Delhi, Pune, Nairobi, Chennai, Ho Chi Minh, Xi’an and Guangzhou.
All but one of the 20 cities in the 2019 index are located in Asia Pacific, reflecting the region’s rapid urbanization and economic growth. Indian and Chinese cities dominated the rankings, while Vietnam, the Philippines and Thailand were also represented. Many of the top performing cities have strong links to the technology and innovation sector, with technology being a key driver of real estate and economic growth.