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2 Investment Intensity Index 2017 JLL’s Investment Intensity Index A considerable weight of capital continues to seek real estate exposure. As competition for product intensifies and new cities appear on the radar of international investors, JLL’s latest Investment Intensity Index reveals subtle changes in the geography of investment. JLL’s Investment Intensity Index compares the volume of direct commercial real estate investment in a city over a three-year period relative to the city’s current economic size. 1 The Index provides a measure of real estate market liquidity, as well as a useful barometer of a city’s overall health, highlighting cities that are punching above their weight in terms of attracting real estate investment. Covering 150 cities around the world, this latest edition identifies the 30 cities which head the rankings for real estate investment relative to their economic size. We also reveal the top cities for cross-border investment intensity, identify the leading ‘Emerging World Cities’ and provide a breakdown of which cities are attracting the most intensive investment activity in the offices, retail, hotels and logistics sectors. 1 Direct commercial real estate investment volumes (over the 2014-2016 period), excluding land, residential and development transactions, in a city’s metropolitan area as a proportion of city GDP. JLL’s Investment Intensity Index covers 150 major established and emerging business hubs across the world.

3 Investment Intensity Index 2017 Key highlights The rise of ‘New World Cities’ Mid-sized cities which typically specialise in high-tech and high-value activities are seeing steady growth in investment and dominate the top ranks of this year’s Investment Intensity Index. The contribution of the ‘New World Cities’ group to global investment volumes has risen from 12% in 2006 to 23% in 2016. High capital flows into European cities Positive qualities relating to transparency, sustainability and stability, combined with strengths in technology, infrastructure and liveability, are supporting strong investor demand in European cities, which account for 12 of the Top 30 cities for overall investment intensity and 10 of the Top 12 for cross-border investment intensity. Resilience of ‘Established World Cities’ Investor appetite remains robust for assets in the world’s most globalised metropolitan economies. As well as leading the rankings for absolute investment volumes, New York, London, Paris and Tokyo also feature in the Top 30 for investment intensity. ‘Emerging World Cities’ struggling to compete for investor attention With a few notable exceptions such as Shanghai and Beijing, major cities in the world’s fastest growing emerging economies are still struggling to make their mark as real estate investment destinations that match their rising economic weight. There are no ‘Emerging World Cities’ in the Top 30 for investment intensity.