# London ranked as Europe’s most attractive city for businesses and employees for second year running Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-03-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: London tops European Cities of Influence Report for Second Meta Description: Discover why London maintains its position as Europe’s most attractive city for businesses and employees in Colliers International’s latest report. URL: https://financedigest.com/london-ranked-as-europes-most-attractive-city-for-businesses-and-employees-for-second-year-runninghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd200318-1-1-1736842913033-compressed.jpg) _— says global real estate advisor, Colliers International’s Cities of Influence report —_ London ranked as Europe’s most attractive city for businesses and employees for second year running  according to Colliers International’s latest European _Cities of Influence_ report, which reviews and ranks cities based on their occupier attractiveness, availability of talent, and quality of life factors alongside economic output and productivity; Paris, Madrid, Moscow and Birmingham making up the rest of the top five. David Hanrahan, Co-head, London Agency and Development at Colliers International says; “London has proved its resilience and magnetism as a global hub in the wake of the EU referendum with a diverse spectrum of investors and occupiers identifying the city as the best place in which to conduct their business. Concerns about a mass post-Brexit exodus from London to the continent have been tapered as the market has rallied, with European businesses close to quadrupling their activity in London last year. This is indicative of the wider factors at play that influence employees and employers alike, not least, striking the right balance between talent, quality of life, cost and risk.” The report demonstrates that the UK remains a highly desirable destination for capital and occupiers, largely driven by its magnetism as a centre of diverse high-quality [service sector](https://www.financedigest.com/the-state-of-cybersecurity-in-todays-financial-services-sector.html "The state of cybersecurity in today’s financial services sector") talent, which is in turn is helping to drive economic output and productivity. Other UK cities which score in the [top 10 include](https://www.financedigest.com/title-interventional-pulmonology-market-shows-huge-demand-and-future-scope-including-top-players-2031.html "Interventional Pulmonology Market Shows Huge Demand and Future Scope Including Top Players 2031") Birmingham (5th), Edinburgh (7th) and Manchester (10th). Madrid jumps high up the rankings into 3rd place, despite being only 8th in the inaugural study in Q1 2017. This is the result of a shift in occupier strength and attractiveness which has also run hand-in-hand with a significant jump in [investment volumes in Madrid over the last year](https://www.financedigest.com/halfway-through-2021-what-can-you-do-now-to-finish-the-2021-investment-year-strong.html "Halfway through 2021, what can you do now to finish the 2021 investment year strong?"). In 2017 Madrid recorded a 72 percent increase in acquisitions, making the Spanish capital the third largest investment market in [Europe for the first time as investors buy](https://www.financedigest.com/credit-agricole-and-caceis-to-buy-rbc-investor-services-europe-unit.html "Credit Agricole and CACEIS to buy RBC Investor Services’ Europe unit") into the significant long-term potential of the city. Perhaps the biggest surprise is Edinburgh, which is the only ‘small’ market (a population catchment of less than two million people) to make it into the top 10, despite not even featuring as a top 30 European [investment market](https://www.financedigest.com/a-holistic-approach-to-esg-is-the-best-chance-of-success-in-a-competitive-private-equity-investment-market.html "A holistic approach to ESG is the best chance of success in a competitive private equity investment market") over the past decade. “It is significant that the gold, silver and bronze positions in our Cities of Influence index mirror investment volumes over the course of 2017, suggesting that investor activity is becoming closer aligned to broader, long-term [drivers](https://www.financedigest.com/automotive-balance-shaft-market-competitor-analysis-winning-strategies-and-growth-drivers-2025.html "Automotive Balance Shaft Market Competitor Analysis, Winning Strategies and Growth Drivers 2025") of occupational growth,” explains Damian Harrington, Head of EMEA Research at Colliers International.  “There are many cases where cities feature strongly in our index but, at present, do not perform as strongly as [investment capital](https://www.financedigest.com/italys-brembo-sets-up-venture-capital-arm-to-invest-in-tech-startups.html "Italy’s Brembo sets up venture capital arm to invest in tech startups") destinations. This includes some of the [key regional UK markets](https://www.financedigest.com/truck-mounted-concrete-mixer-market-size-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2022.html "Truck Mounted Concrete Mixer Market Size, Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2022"), French regional markets such as Lyon, but also cities as diverse as Milan and Moscow. For some, this could be [put down to economic conditions only truly turning](https://www.financedigest.com/techie-turn-offs-top-7-things-that-put-talent-off-applying-for-tech-roles.html "Techie turn-offs: Top 7 things that put talent off applying for tech roles") the corner more recently, but also political conditions curtailing international investment, such as in the case of Moscow. For Milan, significant concerns over the [banking industry](https://www.financedigest.com/enabling-decision-making-success-in-the-banking-industry-3-considerations.html "Enabling decision-making success in the banking industry – 3 considerations") and political uncertainty are holding back both investment and occupier growth. For the UK and French regional cities, however, the ongoing policies of economic devolution and more [labour](https://www.financedigest.com/spains-labour-market-resilient-as-unemployment-drops-in-nov.html "Spain’s labour market resilient as unemployment drops in Nov") market flexibility should see a renewed distribution of capital into these markets, product allowing. When compared to the German Big7, and the major Nordic capitals, UK cities in particular look significantly under-invested, given their occupier strength and [growth](https://www.financedigest.com/functional-extracts-market-potential-growth-share-demand-and-analysis-of-key-players-forecasts-to-2029.html "Functional Extracts Market Potential Growth, Share, Demand and Analysis of Key Players – Forecasts to 2029") potential,” This year’s new extended version of the report looks at 50 major [European economic hubs – building on the twenty cities covered in the inaugural report – providing a broad geographic coverage of European markets](https://www.financedigest.com/white-bullets-collaboration-with-polands-sygnal-association-significantly-reduces-ad-funded-piracy-in-key-european-market.html "White Bullet’s collaboration with Poland’s Sygnał Association significantly reduces ad-funded piracy in key European market") that are of global, regional and national importance. Peter Leyburn, EMEA [Director of Client](https://www.financedigest.com/white-bullet-appoints-stuart-dickinson-as-director-of-advertising-operations-and-client-success.html "White Bullet appoints Stuart Dickinson as Director of Advertising Operations and Client Success") Services at Colliers International, adds: “Office occupier strength is the engine room for a city economy and as a driver of all other forms of [real estate](https://www.financedigest.com/real-estate-brokers-vs-agents-which-one-should-you-work-with.html "Real Estate Brokers vs. Agents: Which One Should You Work With?") demand: be it retail (and thus logistics), hotels, leisure and residential. Occupational strength will also help [drive rental growth](https://www.financedigest.com/increasing-adoption-of-ar-and-vr-in-gaming-expected-to-drive-growth-of-the-global-ar-and-vr-market-through-2025.html "Increasing Adoption of AR and VR in Gaming Expected to Drive Growth of the Global AR And VR Market through 2025") and longer-term this is the most important driver of capital value – especially in an environment where yields do not look capable of compressing any further in the vast majority of markets. So this [analysis should be a good marker for where investment](https://www.financedigest.com/an-analysis-of-vc-investment-in-the-defence-sector-and-the-mods-readiness-to-exploit-digital-opportunities.html "An analysis of VC investment in the Defence sector and the MOD’s readiness to exploit digital opportunities") capital should go.” “Urban transformations and new infrastructure are also very [strong drivers of investment growth](https://www.financedigest.com/lego-posts-strong-growth-on-robust-demand-new-store-openings.html "Lego posts strong growth on robust demand, new store openings"). Given we are now approaching the peak of the investment cycle in terms of pricing, and thus volumes, the logical evolution of the cycle is to see a redistribution of capital into cities, illustrating a strong basis for occupier [growth alongside those with new key infrastructure changes,” says](https://www.financedigest.com/growth-will-pay-for-uk-government-spending-plans-minister-says.html "Growth will pay for UK government spending plans, minister says") Richard Divall, Head of Cross Border Capital Markets at Colliers International. **Some additional City highlights:** - **Zurich, Dublin, London, Edinburgh, Warsaw** \| In terms of the structure of the **workforce** of each city, the research also shows that Zurich, closely followed by Dublin, London, Edinburgh and increasingly Warsaw [strike the right balance of workers](https://www.financedigest.com/london-ambulance-service-workers-to-vote-on-strike-action-union.html "London Ambulance Service workers to vote on strike action – union") in value-add modern professions including IT & communications, financial and business services and professional, technical and scientific roles. Many smaller and mid-size markets feature here, and it is of limited coincidence that the [majority of these markets](https://www.financedigest.com/the-stir-to-be-different-a-major-factor-of-growth-of-the-flax-seeds-market.html "The Stir To Be Different A Major Factor Of Growth Of The Flax Seeds Market") feature highly overall, and in terms of their economic productivity. This includes the major Nordic cities alongside some of the Big7 German cities, but Paris drops [back as a result of over-exposure to jobs in public services](https://www.financedigest.com/tesco-says-online-services-back-up-after-interference-attempt.html "Tesco says online services back up after interference ‘attempt’") and support functions. The stand-out market is Warsaw, which jumps into the top five for the first time courtesy of employment [growth combining a healthy](https://www.financedigest.com/the-biomarkers-market-to-imbibe-healthy-growth-by-innovation.html "The Biomarkers Market to imbibe healthy growth by innovation") mix of IT, professional and technical roles. - **London, Paris, Madrid and Moscow** \| The **prospects of employment**, a career path and success will often start at the University level, and it there is a strong correlation between the overall city scores achieved with those cities providing a strong university catchment. [London is a clear leader](https://www.financedigest.com/world-leaders-gather-in-london-for-king-charles-coronation.html "World leaders gather in London for King Charles’ coronation") in this regard. While many German and UK [regional cities feature in the top](https://www.financedigest.com/tea-pitchers-market-sales-will-witness-stellar-revenue-growth-across-top-regional-pockets.html "Tea Pitchers Market Sales Will Witness Stellar Revenue Growth Across Top Regional Pockets") 20, many seem to underperform in terms of converting their string higher education basis and graduate talent pool into their local talented workforce and economic output. Paris, Madrid and Moscow stand out as cities that do more with their university talent, as do Vienna, Dublin and Copenhagen. - **Zurich, Stuttgart and Vienna** \| Beyond university and working life, overall **quality of life** factors such as crime and safety, access to [health care](https://www.financedigest.com/health-care-information-systems-market-growth-set-to-surge-significantly-during-2018-2026.html "Health Care Information Systems Market Growth Set to Surge Significantly during 2018 – 2026"), climate, traffic commute and pollution has become more relevant and important to many, especially those of the millennial plus generations. Based on these factors we see a different picture entirely, with the top ten [dominated by Germanic and Dutch markets](https://www.financedigest.com/facebook-faces-3-2-billion-uk-class-action-over-market-dominance.html "Facebook faces .2 billion UK class action over market dominance"). Munich leads this category, [closely followed](https://www.financedigest.com/why-google-is-never-closed-for-maintenance-and-how-banks-can-follow-suit.html "Why Google is never closed for maintenance and how banks can follow suit") by Zurich and Stuttgart. Vienna is not far behind, with Utrecht evenly matched in fifth. - **Helsinki, Copenhagen, Zurich and Stockholm** \| While employee-friendly factors do not put the UK in a good light, the reverse can be said of the more **employer friendly-factors** of market risk, operating conditions, labour law flexibility and [corporate tax](https://www.financedigest.com/irish-corporate-tax-boom-breaks-more-records-in-november.html "Irish corporate tax boom breaks more records in November") levels. In this regard, the UK cities sit right at the top of the rankings, which is a reminder of how transparent, flexible and open the UK is as a [place to do business](https://www.financedigest.com/esg-investment-making-your-business-a-more-sustainable-place.html "ESG investment: Making your business a more sustainable place") despite all the much publicised Brexit ruminations. Making up the top five of ‘open [market’ cities](https://www.financedigest.com/smart-city-kiosk-market-to-reap-excessive-revenues-by-2028-trends-and-forecast-by-fact-mr-investigated-in-the-latest-research.html "Smart City Kiosk Market To Reap Excessive Revenues By 2028 | Trends And Forecast By Fact.MR investigated in the latest research") to do business are Helsinki, Copenhagen, Zurich and Stockholm. Prague and Tallinn also sit within the top twenty overall, but their low [cost base significantly differentiates their offer](https://www.financedigest.com/amazon-offers-shoppers-10-to-pick-up-purchases-as-it-targets-delivery-costs.html "Amazon offers shoppers to pick up purchases as it targets delivery costs") in a positive light. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---