Boston was ranked by Schroders Global Cities Index for being a prime global location for real estate investment. Coming in at no. 3, Boston is one of 18 American cities listed in the top 30 by Schroders.
The index utilized a number of factors to identify the most “economically vibrant cities” including the population age 15 and over as a way to gauge demand for goods and services, median household income, retail sales and gross domestic product. The index also factors potential future growth into its calculations and local university rankings.
“We see universities as being critical in powering city economies,” Tom Walker, the co-head of global real estate securities at Schroders, said. “Knowledge-based hubs are growing in economic strength with a positive knock-on to real estate markets in those locations.”
According to Forbes, the index is used by “wealthy, global real estate investors and by institutional firms looking for the best long term value for fixed asset investments.” Shroders is a top international asset management firm.
Out of those categories, Boston ranked highest in university ranking, where it came in second only to Hong Kong. Boston ranked 8th in income, 24th in retail, 24th in population and 17th in gross domestic product.
It’s an impressive showing for Boston. Generally considered one of the most expensive markets in America, the city has seen home prices and demand soar in recent years. And with a construction boom on the horizon, international investors would be wise to get in on the action.
See the rankings of the top 10 cities below.