London and New York face formidable challenges from emerging market cities such as Dubai, Mumbai and Sao Paolo, according to a new report from the Urban Land Institute.
The US research institution said the dominance of London and New York as the world’s leading cities was being challenged by rising economies in Asia, the Middle East and Latin America on a range of factors, including economic reach, quality of life, attractiveness and investment opportunities.
Although New York and Paris were jointly ranked first for investment potential, followed by London, Richard Rosan, ULI Worldwide president, said cities in emerging markets, along with mature cities such as Tokyo, Shanghai and Hong Kong, were presenting a “formidable challenge” to the status quo.
“Cities of the 21st century are hubs of a new globalised society,” he said in a statement. “They are physical nodes of the global economy, the environment, information systems, infrastructure and leisure and culture. As a result, the success of these cities is of vital importance not only to city residents, but to whole nations and the global society at large.”
The report, “City Success: What do the global indices tell us?”, reviewed 30 separate indices and revealed that in the Middle East, India and Africa, labour force skills, quality of life and entrepreneurship were key factors to a city’s success. However, to achieve lasting success, cities must also be open to migration, international trade and investment, he said.
In terms of global economic reach, London and New York were recognised as joint world leaders, followed by Paris, Tokyo and Chicago. Copenhagen was recognised as the leader in terms of quality of life, followed by Vancouver, Vienna and Zurich. Paris was the most attractive city, followed by London, with Sydney, Vancouver, Venice and Vienna in joint third place.