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JLL’s 2015 City Momentum Index ranks Dublin 14th for economic and real estate market growth
DUBLIN, February 09, 2015 – For the first time Dublin has ranked in the Top 20 Global City Momentum Index (CMI) compiled by real estate advisors JLL. The CMI, which tracks the speed of change of a city’s economic base and its commercial real estate market, compares 120 major established and emerging business hubs across the globe. This means that Dublin is one of the fastest changing cities in the world.
The index is unique in that it captures the dynamics of a city’s real estate market – its rates of construction and absorption, price movement and the attraction of a city’s built environment for cross border capital. The CMI goes beyond traditional static economic rankings by delving into the underlying drivers that keep cities competitive and dynamic, as well as identifying signals for change that will impact their future.
Ranked at 14, Dublin appears in the top 20 alongside global super-cities such as San Francisco, New York, Sydney, Beijing and Singapore. Dublin and London are the only two European cities to feature in the top 20 list.
Office rents and investment intensity were the highest ranking indicators for Dublin, placing it at number 1 in the world for growth in the last 12 months. It also ranked highly for retail rental growth (2) and market transparency (5).
John Moran, Managing Director & Head of Investment at JLL Ireland, said “having strong momentum presents Dublin with opportunities, but also risk. It is positive to see Dublin improving its position this year, however there are factors which may impact our long-term sustainable momentum. These gains could soon be lost if government policy does not respond, to urgent market issues, such as the significant supply shortages across commercial and housing sectors. Other than the NAMA response, which is welcome, there appears to be a lot of promises rather than real action.
Building regulations, which are driving up costs and making development unviable, would benefit from modification and intervention from policy makers. In addition, although bank lending for investment has resumed, there is still limited funding available for commercial and residential development. These are fundamental elements for a sustainable economy and society and if not addressed could impact future growth and competitiveness”.