Urban centres are driving global growth
Urbanisation has been a prevailing global trend since the industrial revolution, and in more recent times the growth of service sectors and the impact of agglomeration economics has fuelled the growth of large cities compared to national averages.
This trend is demonstrated when looking at GDP growth. London is a critical driver for the UK economy and its GDP growth has outgrown the UK in recent years. London has consistently outperformed recent expectations for economic growth, including two record years of jobs growth in 2021 and 2022.
Figure 1: Historical average GDP growth (%), 2016–2025*
*Includes forecast data for full-year 2025.
Looking forward, cities will drive further progression. We expect London to continue to evolve at great pace, driven by growing urban populations, the rise of artificial intelligence, and the path to net zero.
The short‑term global outlook remains relatively subdued driven by the near‑term forecast, but London remains a proven heavyweight and is well‑placed to grow relative to its peers. We expect stronger GDP growth for London (exceeding 2% annually) later in the forecast period to 2030.
Figure 2: Forecast average GDP growth (%), 2025–2030
What makes London a successful city?
Shaping Tomorrow's Cities
Explore the six critical pillars for a winning city outlined in our latest report.
Read the Full Report
Our report, Shaping Tomorrow's Cities, outlined six key pillars which we see as the critical building blocks for a winning city.
Using this framework clearly demonstrates that London has the legacy, scale, and future growth prospects to meet this criteria.
London is a global powerhouse, home to world-leading institutions, strong commercial sector clusters, and underpinned by a globally admired transparent legal system. Having grown success from strong structural advantages, today it brings together established and high quality economic, social, and industrial networks and has the momentum required for future growth.
-
Economic dynamism
- Leading global financial centre (Second in Z/Yen Global Financial Centres Index)
- The European city with the most ‘Fortune 500 Europe’ companies
- London has 8,604 start‑ups and 42 unicorns. Its startup ecosystem grew by +29.8% year‑on‑year in 2025
- The UK has 26 universities ranked in the top 200 globally, including five which are London-based
-
Demographic potential
- Oxford Economics’ number one leading city worldwide for ‘Human Capital’
- 41% of Londoners were born outside the UK, and c. 300 languages are spoken in the city
- c. 61% of the Inner London population is under 40
Source: ONS, Oxford Economics, CBRE - Relative affluence – world’s sixth city (by number of millionaires)
-
Lifestyle vibrancy
- Gold ranked by the Happy City Index 2025
- London hosts 80 Michelin‑starred restaurants, 850 galleries, and more than 790 festivals, theatres, and music venues
- There are c. 3,000 parks and c. 20% of London is public green space. In 2019 London was named the world’s first ‘National Park City’
-
Resilient infrastructure
- Robust and sustainable public transport network and progressive urban design – number one according to the IESE Cities in Motion Index 2025
- Major global connections – six major international airports (including London Heathrow, the fifth busiest airport in the world) and the UK Eurostar terminal, plus broad connection to domestic travel services
- At least £725bn proposed government funding into infrastructure in the next decade
-
Distinctive identity
- One of two Alpha++ Cities according to GaWC 2024, it plays a crucial role in the world city network
- The number one global destination according to the Tripadvisor Travellers’ Choice Awards 2025
- Hosted c. 21 million inbound visits and c. 15 million domestic trips in 2024
- Home to four UNESCO world heritage sites
- Global reach in sports – £230m direct economic impact and 480,000 spectators at key events in London in 2024
-
Responsive governance
- #2 global city under governance ranking, behind only Bern, Switzerland
- Ongoing strategies to define the long-term agenda for London, such as the London Growth Plan
- The Government is reactive for example, from a real estate perspective, it has recently announced emergency support to boost London housebuilding
London’s growth eclipses many other markets
Development within each of these pillars has stimulated external investment, business occupation, and tourism, and has increased the ‘liveability’ of London.
The pull of activity towards London underpins our expectations for its success at the macrolevel and for real estate markets, as economic growth boosts demand for real estate from both occupiers, and investors.
Figure 3: Cumulative office-based employment growth, 2016–2025*
*Includes forecast data for full-year 2025.
Office‑based employment demonstrates this relationship. Furthermore, London’s growth has exceeded that of many other large European and global cities, and we expect this trend to continue.
