RESULTS OF THE KNIGHT FRANK GLOBAL CITIES SURVEY

THE PRESENT

The Knight Frank Global Cities Survey has become a well regarded monitor of city-level power shifts since it was created in 2008. As in previous years, our objective has been to assess key markets across the world in terms of their provision of investment opportunities and their influence on global business leaders and the political elite.

This year’s survey reveals 14 cities sliding down the rankings and 16 moving up. The biggest movements, unsurprisingly, came in our Economic Activity category. The ongoing West-to-East shift in economic might is highlighted by the fact that eight of the 13 jumps in this area were by Asian cities, led by Shanghai and Kuala Lumpur.

But the West is not without its successes. Munich’s rise in this category points to the new confidence in Germany – its star has been rising strongly during the Euro crisis. As we confirm on page eight, with a HNWI population double that of China, German wealth is likely to increasingly influence regional asset price performance.

When we look at Political Power, we can see a more nuanced version of the West-to-East narrative. The majority of risers in this category are claimed by North America. With San Francisco and Toronto leading the charge, it appears to be those cities with most appeal to Asian investors that are seeing improving fortunes.

Singapore’s rise in this category might raise eyebrows. The city-state is a relative minnow in terms of its population, military and global economic power – its success in influencing regional powers is due to its skills of coercion and attraction.

Rises in our Quality of Life indicator from Sydney and Zurich will no doubt be greeted by weary acceptance from a world long inured to the superiority of Swiss and Australian city living. The rise in London’s ranking may raise a few eyebrows. However, arrival at London’s refurbished St Pancras station or to Heathrow’s Terminal Five show that London has invested in infrastructure in recent years.

Some of the widespread changes in this year’s Knowledge and Influence ranking, with 32 out of 40 cities changing place, can be attributed to improved datasets we have been able to rely on this year. However, this volatility is also an indication of the level of competition between cities that are seeking to exert power through investment in knowledge industries.

The overall winners this year are a diverse grouping, with Boston, Munich, Milan, Mumbai and Rio de Janeiro among the biggest climbers in our rankings. At the top of the table, however, there is no change – New York holds the pole it stole from London last year.

THE FUTURE

Despite some improvements from our emerging market cities – particularly in the Asian behemoths – to some, the top of our ranking might look slightly too European and North American in flavour. So what of the future, how will our list look a decade from now?