Global Gateway Cities have not consistently represented “superior” or “safer” investment locations, according to new research undertaken by MSCI.
Following the December 2017 Property Council/IPD Australia All Property Index released last month, MSCI have published a new report, Global Gateway Cities: The Performance Behind the Hype.
The report works to examine the conventional wisdom suggesting well connected and economically dynamic Global Gateway Cities – such as New York, London, Paris and Tokyo – should yield superior investment returns.
MSCI analysed historical global index data and found Global Gateway Cities did not represent “superior” or “safer” investment locations, however they did tend to outperform their national markets, albeit with greater volatility. While city level trends are important to consider, it is clear that national level dynamics were also significant drivers of performance variations.
The research compared these gateway cities against a range of other regional, nationally significant, and other cities across the globe. Total return metrics for investment assets, along with risk elements and other country effects – such as interest-rate environment and broad capital market conditions – were all used to undertake this research and present an informed analysis of global city performance.