Metro Manila's skyline. Photo by Reuters
MANILA, Philippines - Manila has been included in the top 30 cities of the world, a study by global real estate services firm JLL showed.
This was the first time the Philippine capital was included in JLL's list of top 30 cities, considered as the world's largest business centers and real estate markets.
JLL said the top 30 cities accounted for over 50 percent of total commercial real estate investment among the Global300.
"The cities comprising the Global Top 30 have remained broadly consistent since 2012 – Manila is a new entrant to the Top 30, while Madrid has fallen out, which is symptomatic of the steady shift in the balance of real estate activity towards the Asia Pacific region," the 2014 update of the JLL Global300 study stated.
JLL's Global300 study covered 300 cities in the world, selected based on an Index of Commercial Attraction which measures an urban center’s economic and real estate power and status.
"Rapid urbanization is pushing Manila into becoming one of the largest cities in the world... In a nutshell, it is more people needing more real estate: but let me stress it is not just real estate by itself, but real estate that is adequately supported by infrastructure, and a thought-provoking, credible, sustainable, enforceable master plan," David Leechiu, JLL Philippines country head, said in a statement.
Leechiu noted the unprecedented real estate boom, which has been going on for the last 10 years, is likely to "go on for the medium term."
"It demonstrates dramatic but real fundamentals supporting this economic growth: real and new jobs are being created, real and new wealth as well," he said.
The Global Top30 list divided cities into super cities, mature cities and emerging cities.
Under emerging cities, Manila was included along with Seoul, Shanghai, Beijing, Moscow, Sao Paulo and Jakarta. Other Asian cities on the list included Guangzhou, Bangkok, Delhi and Mumbai.
The JLL study identified four "super cities" as Tokyo, New York, London and Paris.
"Globalization is propelling four cities into the realm of ‘Super City’ status – Tokyo, New York, London and Paris—an elite group that possesses a powerful combination of economic scale and influence, deep corporate bases, highly liquid real estate investment markets and large, diverse and high-quality commercial real estate," JLL said.
The study identified Tokyo, New York, Seoul, Los Angeles and London as the world’s largest city-economies.
Four of these cities excluding Los Angeles were also home to most corporate international headquarters.
Four of the top five largest city-economies excluding Seoul were consequently also among the top five real estate investment markets.
JLL noted competition between cities for capital, corporations and talent has intensified.
"There are now in excess of 1,600 major cities across the world… all jostling for global attention and looking for a winning edge," the study said.