The below infographic captures three megatrends that are the driving forces behind global real estate investment.
Three Megatrends Dominating Global Real Estate Investment
According to CBRE, the world’s largest real estate investment manager, the three trends driving the commercial real estate market can be summed up as the following:
There’s $1.1 trillion expected to flow into commercial real estate in 2016, and much of that money will be stemming from international sources.
World-class cities are seeing more outside capital for all types of real estate. Take London for example, where 60% of commercial real estate has been bought by international investors over the last 10 years.
How can investors make this trend their friend? By looking for opportunities to diversify real estate portfolios across a broader mix of geographies and asset types, and by thinking globally while developing strong knowledge of local markets before investing.
The world is shifting fast as far as demographics go.
Western countries will be welcoming many more retirees to their ranks. Meanwhile, the middle class in Asia will explode in growth. Once just 500 million people in 2009, it will be 3.3 billion by 2030 – accounting for roughly two-thirds of the global middle class.
Where will these people live?
Cities. About 50 megacities will account for the vast majority of economic activity. (See which megacities are growing the fastest here)
Look at investing in emerging markets that have a rapidly expanding middle class, and look for opportunities to capitalize on areas with large retiree populations.
Lastly, as technology becomes more ubiquitous, it will have an impact on real estate markets from several angles.
The amount of tech workers grew 61% between 2010 and 2013 among the top 15 urban centers. Also, driverless cars will also have widespread market penetration by 2029, and this will reshape and re-map entire communities.
Explore emerging technology hubs for real estate opportunities, and look for opportunities in urban-adjacent industrial properties as businesses establish distribution centers near cities to reduce the costs of delivery.
Mapped: The World’s Top 10 Cities in 2035
Cities are heavy hitters in the global economy. Where will the top 10 cities be in 2035—based on GDP, population, and annual growth?
Mapped: Where Will The Top 10 Cities Be in 2035?
Cities are the engines of the modern economy. Over half of the world now lives in urban areas, and urbanization continues to shape the trajectory of global growth in unprecedented ways.
However, the most important cities of today may be quite different than those leading the charge in the future. This week’s chart looks forward to 2035, using a report by Oxford Economics to forecast the top 10 cities by measures of economic size, population, and GDP growth rate.
Each map is categorized by one of these metrics—and depending on which one you look at, the leaders vary greatly.
Top 10 Cities by Projected GDP
The top 10 cities by gross domestic product (GDP) in 2035 will be fairly widespread. Three cities are expected to be in the U.S.—New York, Los Angeles, and Chicago. The Big Apple’s forecasted $2.5 trillion GDP likely stems from its strong banking and finance sectors.
|#1||New York||🇺🇸 United States||$2.5T|
|#3||Los Angeles||🇺🇸 United States||$1.5T|
|#4||London||🇬🇧 United Kingdom||$1.3T|
|#8||Chicago||🇺🇸 United States||$1.0T|
Four cities will be found in China, while London, Paris, and Tokyo are set to round out the last three. Interestingly, Tokyo is the #1 city today, with an estimated $1.6 trillion GDP in 2019.
Altogether, these top 10 cities will contribute an impressive $13.5 trillion in GDP by 2035. Clusters of such metropolitan areas are typically considered megaregions—which account for a large share of global economic activity.
Top 10 Cities by Future Population
Next, it’s clear that top cities by population will follow a distinct global distribution. By 2035, the most highly-populated cities will shift towards the East, with seven cities located in Asia.
|#1||Jakarta||🇮🇩 Indonesia||38 million|
|#2||Tokyo||🇯🇵 Japan||37.8 million|
|#3||Chongqing||🇨🇳 China||32.2 million|
|#4||Dhaka||🇧🇩 Bangladesh||31.2 million|
|#5||Shanghai||🇨🇳 China||25.3 million|
|#6||Karachi||🇵🇰 Pakistan||24.8 million|
|#7||Kinshasa||🇨🇩 DR Congo||24.7 million|
|#8||Lagos||🇳🇬 Nigeria||24.2 million|
|#9||Mexico City||🇲🇽 Mexico||23.5 million|
|#10||Mumbai||🇮🇳 India||23.1 million|
While Jakarta’s 38 million-strong population is expected to emerge in first place, the city may not retain its status as Indonesia’s capital for much longer. Rising sea levels and poor water infrastructure management mean that Jakarta is rapidly sinking—and the government now plans to pivot the capital to Borneo island.
On the African continent, Kinshasa and Lagos are already among the world’s largest megacities (home to over 10 million people), and will hold top spots by the turn of the century.
Population and demographics can be major assets to a country’s growth. For example, India’s burgeoning working-age demographics will present a unique advantage—and the country is projected to contain several of the fastest growing cities in the coming years.
Top 10 Cities By Estimated Annual GDP Growth
When comparing cities based on their pace of economic growth, there are some clear standouts. Average annual GDP growth across cities is 2.6%, but the top 10 surpass this by a fair amount.
The kicker? All of 2035’s major players will be found in Asia: four of the fastest-growing cities will be in mainland China, another four in India, and the last two in Southeast Asia.
At #1 by 2035 is Bangalore with an expected 8.5% annual growth forecast—its high-quality talent pool makes the city a breeding ground for tech startups. Jakarta makes another appearance, with its projected 5.2% growth at double the city average.
Shanghai finds its way onto all three lists. The commercial capital hosts the world’s busiest port, and one of China’s two major stock exchanges. These sectors could help boost Shanghai’s annual GDP growth to 5% in 2035.
Looking to the Future
Of course, any number of variables could impact these 2035 projections, from financial recessions and political uncertainty, to rapid urbanization and technological advances.
But one thing’s certain—in the coming decades, cities are where many of these factors will converge and play out.
Visualized: The Esports Journey to Mainstream
This infographic plots the journey of esports, from underground niche to a billion-dollar mainstream phenomenon—and it shows no signs of slowing down.
Visualized: The Esports Journey to Mainstream
Although esports might seem like a relatively new phenomenon, its origins can be traced all the way back to the 1970s.
It was only in the past decade however, that a wave of technological innovation transformed the entire industry from an underground niche into a billion-dollar mainstream phenomenon.
Today, the nascent esports industry competes with some of the biggest sports leagues in the U.S., while global tech giants hastily invest billions of dollars to make their mark in what many consider to be the future of sports and entertainment.
How did it evolve into the industry we know today—and more importantly, will it maintain its furious pace of growth?
The History of Esports
Electronic sports (or esports), are organized, multiplayer video game competitions commonly played by professional gamers. Since its inception, the industry has continued to exceed expectations and reach new milestones every decade.
Note: The timeline of events are an abridged version of major achievements in the industry.
1970s: The Birth of Esports
The earliest known video game competition—the Intergalactic Spacewar Olympics—took place in 1972 at Stanford University. The winner of the event received an annual subscription to Rolling Stone magazine.
While it was a modest first prize for the industry, it would set a foundation for future prize pools in the millions of dollars.
1980s: More Gaming Options
The 1980s ushered in better consoles for esports. The Nintendo Entertainment System (NES) took graphics, controls, gameplay, and video game accessibility to the next level.
Five years later, the Sega Genesis console was released in the U.S. and Japan to compete with Nintendo—which held a 95% market monopoly at the time.
1990s: The First Tournaments
Nintendo increased its commitment to esports by hosting the Nintendo World Championships. After touring 30 cities in the U.S., the finals challenged players to games like Super Mario Bros. and Tetris, with a 40-inch TV awarded to the winner.
Developers and gaming entrepreneurs created a flurry of leagues, including QuakeCon in 1996, followed by both the Cyberathlete Professional League (CPL) and the Professional Gamers League (PGL) in 1997.
In just a few years, these competitions helped esports gain significant traction.
2000s: The Explosion of Esports
Esports fully burst into the mainstream with Amazon’s acquisition of Twitch for $970 million in 2014. The live video game streaming site gave esports a platform to reach previously unthinkable heights, with popular games like League of Legends (LoL) and Defense of the Ancients 2 (Dota) receiving millions of views.
In 2019, Google followed suit with its Stadia streaming service. The cloud-based video game platform aims to eliminate the need for hardware, allowing Google to aggressively compete in the esports space.
A Snapshot of Esports Today
The increasing involvement of developers and global tech giants has not only increased the audience size of esports—it has also led to bigger prize pools, and larger scale competitions across the world.
- Demographics: 50% of esports viewership now comes from Asia.
- Engagement: 6 billion hours were dedicated to watching esports in 2018, and will continue to grow to 9 billion by 2021.
- Buy-in: The price of one of the 12 Overwatch League teams for sale in 2017 was $20 million.
- Incentives: The Fortnite competition prize pool for the 2018 season was $100 million—equal to the entire esports prize pool in 2017.
It’s clear that esports continues to attract rapidly growing audiences at an unprecedented rate. However, there are still significant barriers inhibiting the industry from reaching its full potential.
The Future of esports
In order to maintain its furious pace of growth, the esports industry must first address five key challenges:
- Diversity of game genres: The industry will need to produce more game genres in order to appeal to a wider audience outside of its current player base.
- Geographic expansion of leagues: esports will need to expand to national, regional, and global levels if it wants to tap into bigger advertising budgets. However, while esports gains attention from global media, local events are more difficult to organize.
- Regulation of competitions: With multimillion-dollar prize pools at stake, new rules and regulations are needed to combat cheating and match fixing.
- Ownership of media rights: Content rights have not been a focus for publishers, as fan-generated content has served as free advertising for their games.
- Media alignment: Traditional media brands are still reluctant to associate themselves with esports, as prejudices against competitive gaming still exist. For example, gaming culture is viewed as a harmful distraction, rather than a legitimate sport.
In less than 50 years, esports has evolved into a dominant form of entertainment today, eclipsing film and music industries by a wide margin. With an increasingly mainstream audience, the industry’s popularity and profitability shows no signs of slowing down—despite the challenges it faces.
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