It is an encouraging signal for both domestic corporations seeking City office space to let and international investors buying London office property, as a hedge against the prevailing economic uncertainty.
New York has been awarded the gold medal for attracting business, finance, talented staff and tourists. While, America, as whole, accounts for four of the top 10 best global cities, according research from the Economist Intelligence Unit.
The top 10 most competitive cities in the world:
- New York
- (tie) Paris & Hong Kong
- Washington, D.C.
Citigroup commissioned the study to examine the competitiveness of 120 business locations across the world. These key economic key indicators were assessed and weighted in the following order, of ascending importance: Social and Cultural Character, Environment and Natural Hazard, Physical Capital, Global Appeal, Financial Maturity, Institutional Effectiveness, Human Capital and Economic Strength.
Once the information was gathered and evaluated by the EIU, London proved to be most dominant in Finance (joint 1st with Zurich, Toronto, Tokyo and New York) and Culture (joint 5th behind Zurich, Sydney, New York and Los Angeles).
The research revealed that London (65.1 ponts) is widely considered to be head and shoulders above New York (35.7 pts.) for Global Appeal among Fortune 500 companies due its airline capacity and university provision. The Capital was ranked 1st ahead of Paris (64.8 pts.) and Tokyo (44.4 pts.).
However, in this Olympic year, the British Capital will face stiff competition from the rapidly ascending cities of Shanghai, Dubai and Doha.
Cities in the emerging economies hope to leapfrog rivals by developing a specialist niche or gaining a competitive edge by rolling out citywide wi-fi networks to foster e-commerce entrepreneurialism.
With a Mayoral election in May, the candidates will hope that City office rental market will prove resilient, and that the demand for Shoreditch offices to let and Midtown office space will continue, as the emerging Silicon Roundabout attracts growth from the Technology Media and Telecoms sectors.