A city’s capacity to embrace rapid change determines its ability to compete in the world – now and in future as things change, according to JLL’s 2017 City Momentum Index (CMI). With more than half the world’s population currently living in cities, and urbanization growing exponentially, the success of our cities takes on an even greater imperative. The factors that determine the world’s most dynamic cities are technology and innovation and ability to absorb & adapt.
What is the City Momentum Index?
The Index tracks the speed of change of a city's economy and commercial real estate market. It covers 134 major established and emerging business hubs and identifies cities that have the potential to maintain the greatest dynamism over the short and long term. It incorporates 42 metrics across 3 key areas - Short term momentum, Long term fundamentals and commercial real estate momentum.
Bangalore ranked as 2 on short term momentum, 36 on commercial real estate momentum and 80 as long term fundamentals.
The first set of factors, which accounts for 40% of the overall ranking, includes socio-economic factors – GDP, population, air passengers, corporate headquarters and foreign direct investment. That's where Bangalore has done well with it being the 2nd largest IT cluster after silicon valley.
The second, accounting for 30%, focuses on commercial real estate momentum, which encompasses changes related to construction, rents, investment and transparency in the office, retail and hotel sectors. Ranked 36, Bangalore has seen least vacancy in office space .
The third group includes innovation capacity and technological prowess, access to education and environmental quality. It accounts for 30% of the index. Bangalore has the highest startup population in India giving it the edge on the innovation capacity, coupled with the technology focus that the area brings
The assumption is that without a concentration on education and the environment, strong economies and business practices that encourage start-ups and patent applications, these cities can flame out.