JLL’s latest research with The Business of Cities explores the role city governance plays in location decisions by real estate investors, developers and corporate occupiers. The COVID-19 pandemic has exposed how vulnerable cities are to external shocks. As choices are made between and within cities, looking at the way cities are run, managed and led can help spot which have significant recovery and improvement capacity, and which may slip backwards.
The report identifies Dubai as a strong partner for real estate investors, developers and occupiers, given its tight governance arrangements that create strong coordination and clarity around responsibilities. This model makes way for a predictable investment system and the calibre of leadership to drive long-term agendas, enabling the cities to be quick, capable and productive in responding to opportunities.
Thierry Delvaux, CEO of JLL MEA, said: “As the report highlights, cities like Dubai are far better equipped to enter into sustained partnerships with investors and developers, given their governance models. What 2020 has proven is that while macro fundamentals are important, qualitative characteristics such as good governance, management, health and safety will have a large impact on where people choose to live, work and play. These factors will play a huge role in decision making moving forward and in identifying cities that will emerge as resilient post-pandemic.”
“In order to prepare, react and future-proof effectively, cities require strong governance, a high level of transparency and brokerage between various city stakeholders and the private sector,” added Jeremy Kelly, Director, Global Research, JLL. “We believe responsible investors and businesses will increasingly seek capable and agile city partners who have a clear vision for a sustainable and inclusive future.”