The international real estate investment manager Savills Investment Management (“Savills IM”) once again ranks Munich, along with Berlin, among the ten most dynamic cities in Europe in 2018.
In this year's Savills IM Dynamic Cities Index, London ranks first for the second year in a row, followed by Cambridge, Paris, Amsterdam, Berlin, Dublin and Munich, the top 10 climbers Oxford and Basel, and Stockholm, which fell two places compared to the previous year.
Particularly good at innovation and networking
The Isar metropolis performed particularly well in the categories of innovation and networking (fourth place in each). The award, initiated by the Federal Ministry for Economic Affairs and Energy, Developing Munich into a digital hub for InsurTech has contributed to the development of a vibrant startup scene, as Savills IM notes, and at the same time highlights Munich's growing importance as a key European financial center. The Bavarian capital has seen a total of strong economic and population growth Oxford Economics expects this growth to continue. Accordingly, according to Savills IM, demand for commercial and residential real estate is also likely to continue to rise.
For the Savills IM Dynamic Cities Index, a total of 130 European cities and urban regions were analyzed across six categories (innovation, inspiration, inclusion, connectivity, investment, and infrastructure). The index is led by cities that successfully attract and retain talent, drive innovation, and increase productivity. This promotes prosperity and population growth, and thus the positive development of commercial real estate markets.
“Munich is not resting on its laurels”
Andreas Trumpp MRICS, Head of Research Germany at Savills IM, says:
"With Berlin, Munich, and Frankfurt, three German metropolises are included in the top 20 of the Savills IM Dynamic Cities Index for the first time. Munich, ranked seventh, has a very strong appeal for companies and boasts the highest density of DAX 30 companies. Munich is not resting on its laurels, but is managing to leverage its existing locational expertise, for example in the insurance industry, into new, groundbreaking ideas. The establishment of the InsurTech Hub Munich contributed to Munich's particularly strong ranking in the categories of innovation and networking, with fourth place in both. The strong population and economic growth places high demands on the city's land management. The Werksviertel near Munich's Ostbahnhof (Eastern Train Station) represents a current example of the conversion of a formerly commercial and industrial site into an urban, mixed-use district."
Mayor Josef Schmid says:
"Munich is one of the most attractive business locations in Europe. Munich's economy is already successfully translating the impulses of digital technologies into innovative products, business areas and new markets. The state capital of Munich intensively promotes innovation and digitalization. In this way, a digital ecosystem has developed in Munich through the interaction of established companies and startups, which is driving digitalization and networking in the region. For example, the German government has named Munich Location of the digital hub for mobility and the digital hub InsurTech. And in the future, the state capital will continue to seize the opportunities offered by digitalization and work on innovative and sustainable solutions for the city of tomorrow."
