01 February 2020

Cities in the Middle East and Africa (MEA) are gaining momentum, with Dubai, Riyadh and Nairobi all ranked within the top 20, according to JLL’s City Momentum Index 2020 which identifies the world’s most dynamic cities from a real estate perspective.

 Now in its seventh year, the JLL’s City Momentum Index combines socio-economic and commercial property metrics to provide new insights into 130 major established and emerging business hubs across the globe.

 India – with seven cities in the top 20, the most of any country – leads the 2020 Index, despite last year’s slowdown of the nation’s economy.  This strength is driven by locations in the country’s southern states, with Hyderabad (first) and Bengaluru (second) retaining their status as the top two cities for short-term momentum, said the top real estate industry expert.

 With Dubai (14th) ranking in the top 20 for the first time in three years, the emirate continues to be the major business hub in the Middle East, with more than half of the population aged 20-40 (the second highest proportion globally).

 Government initiatives such as the relaxation of visa regulations have also been designed to balance out the construction boom in commercial and residential properties while momentum is expected to be fuelled further in the lead-up to Expo 2020 Dubai, said the JLL in its report.

 The Saudi capital Riyadh (18th) enters the top 20 for the first time and is benefitting from the kingdom’s ‘Vision 2030’ programme of economic reforms, with its objective of diversifying the economy away from oil.

 Initiatives to improve the quality of life through better infrastructure and entertainment in combination with introducing regulations to expand tourism will continue to have a positive impact on the economy and real estate market.

 According to JLL, both Dubai and Riyadh have ambitious infrastructure plans. Dubai’s infrastructure impetus is in part being driven by Expo 2020, while the scheduled opening of the Riyadh metro network in 2020-2021 is expected to transform the city’s mobility, it stated.

Commenting on the regional cities performance, Thierry Delvaux, CEO of JLL MEA, said: “It is great to see the MEA region represented in the top 20 ranking of the Momentum Index, driven by government initiatives. These cities are leading the way by successfully addressing infrastructure needs to further enhance mobility, while creating thriving, inclusive, safe and affordable communities.

 “Moving forward, we will see real estate play a more important role in smart-city futures, driving greater energy efficiency, and promoting sustainable, scalable and smart developments.”

The top real estate expert said these results also showed a continued shift in global influence from west to east, with Indian, Chinese and Vietnamese cities dominating the top positions.

Several cities in the top 20 stand out as they transform their urban environments in pursuit of a low-carbon future but Dubai takes the lead in sustainability initiatives.  

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