Insights – World Class Cities Spring 2012

Report Summary:

In this third edition of our World Cities Review, we revisit our class of 10 global cities in the light of increasingly challenging economic conditions. Since our last review in the summer of 2011, the eurozone crisis has pushed the global economy to the brink of recession. This has weighed heavily on the residential markets that we monitor.

In the ‘new world’ markets, booming just six months ago, growth rapidly slowed. In Shanghai, Hong Kong and Singapore, government cooling measures have also compounded this trend. Global uncertainty has however pushed some equity investors towards stable cities and some world city real estate has become a ‘safe haven’ commodity.

Consequently, in our ‘old world’ cities, prices are still holding up and out-performing domestic markets. Ironically, the biggest risks to many world city real estate markets are therefore global stability, appreciating currency, and an improving economic outlook. In this issue, we look at the costs of trading property as well as comparing rents, yields and capital values.

About the Author:

Savills advise a wide range of clients on property acquisition, occupation and ownership strategies, asset management, regeneration, planning, development and building consultancy, stock condition, disposal and management. They have in-depth knowledge of local and national property markets throughout the world. Their team also includes specialists in matters as diverse as finance, urban design, energy conservation, social housing and research as well as in leisure, healthcare and hotels.