Among Asian cities, Shanghai, the commercial and financial centre of China, is on track to become part of the “Big Seven” group of Established World Cities before the end of the decade.
That’s according to JLL’s Director for Global Research, Jeremy Kelly, who says that Shanghai’s fast-track momentum is supported by massive infrastructure investment, increasing global connectivity, improving transparency and a shift into high-value activities.
Shanghai’s rise up the real estate investment ranking has also been spectacular.
“Real estate transaction volumes have increased more than ten-fold over the past decade, testimony to a city that is fast-tracking to maturity,” says Kelly, explaining that direct commercial real estate investment volumes in the city grew from US$1.4 billion in 2006 to US$15 billion by 2016. The city’s current real estate investment intensity is due to the very high volumes of domestic capital chasing assets, he explains.