The hidden people factor in the City Momentum Index

The JLL City Momentum Index is now into its fourth edition. It’s a much-anticipated piece of research that looks at 42 different elements of a city’s dynamism, such as the creation of new businesses, connectivity, speed of innovation and real estate transparency. These are factors that support the future performance of a city, differing from other ranking systems which tend to use indices based on past performance.

A city with strong momentum can mean both opportunity and risk. Our clients use our Index to gauge the potential of a city and to steer location or investment decisions based on its ability to sustain the dynamism over the long term.

Asia Pacific continues to be a star performer in the Index, testament to the immense growth and change that characterise the region. This year, India’s Bangalore grabs the top spot for the first time, while Vietnam's Ho Chi Minh City and Hanoi have entered the global top 10, coming in at second and eighth place respectively. In fact, Asian cities make up half of the top 10.

While the Index looks at several people-centric variables such as the projected change in population and innovation capability, the thing that’s hard to capture is the energy of a city’s people. A city’s dynamism is largely down to its residents. The cities that do well are not just plugged into the global economy and responsive in how they embrace change and challenges. Their people are similarly hungry and forward-looking.

It is why a city like Shanghai has consistently been in the top 10 of the Index for all four years. As a former resident of Shanghai, I can tell you that has much to do with the ambition and vitality of the Shanghainese. My 10 years in the city were inspiring and invigorating – I was constantly amazed by the speed of change and innovation of the city. When I arrived in 2006, there were just five lines for the subway. By the time I left, it is one of the largest metro networks in the world. Shanghai’s office space has also grown 213 percent in that same time.

When I visited Ho Chi Minh in November, I discovered a city brimming with energy and optimism. Vietnamese I met were forthcoming—whether it was to recommend the newest hot restaurant or discuss investment opportunities – and excited about their city’s progress. My clients and colleagues in Indian cities such as Bangalore, Chennai and Hyderabad share similar experiences.

The City Momentum Index tells us a lot about how cities are developing; but it also engenders a sense of pride in those cities that have climbed the rankings. Just last week I opened an email containing a clipping from the Times of India. There, taking up half a page was an advertisement by the Government of Karnataka proudly announcing that Bangalore is The Most Dynamic City in the World.

Find out where your city ranks here.