Among the “New World Cities”, Hamburg holds the sixth position, the real estate experts of Jones Lang LaSalle (JLL) state in their their latest report on “Globalisation and Competition: The New World of Cities”. Also included in the Top 10 were two other German cities: Munich was ranked third, Berlin ninth. According to JLL, the current cycle of globalisation has seen the rise of many smaller, more specialised, but highly globally oriented cities. They are smaller, high-income cities with efficient infrastructure, an attractive quality of life, and fewer social, environmental or economic externalities such as crime, pollution, congestion, high costs or inequality.
These ‘New World Cities’ have begun to internationalise their economies based on a small number of specialisms derived from their comparative advantages as smaller, more liveable and attractive centres. Several are
knowledge, cultural or entertainment hubs, but many also possess hi-tech, innovation or research capabilities that
make them important cities in the convention and higher education economies. Because they do not often possess major political or institutional functions, ‘New World Cities’ are more agile than their nearest ‘Established World Cities’. They are becoming specialised centres for decision-making, knowledge intensive sectors and quality of life. They now compete openly in contested global markets (e.g. for tourism, higher education, events, R&D, summits, medicine). Hamburg is one of them.
Pioneers of the Future
“We assume that, o the other hand, those cities will take the lead due to their attractiveness for the so-called Millennials’, technology companies and other knowledge-based sectors that bring along intelligent and sustainable urban development and real estate innovations. On the other hand, they will also lead the way in regard to the quality of life and contemporary work styles”, said Hela Hinrichs, Director EMEA Research JLL.
Defining a ‘New World City’
Strict criteria are being used by JLL to define a New World City. These are:
• Scale and productivity: US$100-400 billion metropolitan economy, 1-8 million population
• Internationalisation: Top 120 for global economic connectivity
• Investibility: Top 100 for commercial investment
• Appeal and opportunity: Top 50 for knowledge, visitors or brand
• Specialisation: Highly competitive (top 20) in at least one index area
• First cycles of development: Absent from the top 40 of 3 or more index areas
The positive evaluation of Hamburg by JLL is also reflected by Hamburg’s 16th position in the Mercer Quality of Living Surve and rank 18 in the 2thinknow Innovation Cities Index
Next to “New World Cities”, JLL groups cities in two other categories: Established World Cities and Emerging World Cities. Established World Cities have had open and internationalised economies for at least three business cycles. They combine proficient corporate clusters with global reach, strong infrastructure platforms and an enduring cultural appeal. In the leading global indices, six cities stand out: London, New York, Paris, Tokyo, Hong Kong, and Singapore. This group, known as the ‘Big Six’, were once often described as the “command and control” centres of the world economy.
‘Emerging World Cities’ are the business capitals of large domestic economies, and experience many of the scale, governance and implementation challenges of more established regions. Often supported actively by their national governments, they are in a process of economic adjustment and urban and metropolitan restructuring to optimise the benefits of global engagement. ‘Emerging World Cities’ have become centres of demand as well as supply. Next to Shanghai and Beijing, Jakarta, Istanbul and Mumbai are top cities in this category.