Opportunities in an Urbanizing World
+ Brandon Fuller
Some highlights from a recent Credit Suisse report on urbanization-related investment opportunities in emerging markets:
- This year alone, the world’s cities will grow by 65 million people – a number equal to the total population of France. 90% of this increase will occur in cities in the developing world.
- Of the 15 largest urban agglomerations in 2025, just two – NYC and Tokyo – will be in high-income countries.
- The populations of Kolkata, Lagos, Karachi, Mumbai, Dhaka, Delhi, and Kinshasa will all increase at a rate between 300,000 and 500,000 people per annum from now until at least 2025.
- By 2020, the top three countries in terms of the number of cities with populations greater than 1 million will be: 3. United States (46); 2. India (58); and 1. China (121).
- In 2007, the latest year for which city level data is available, 37.3% of GDP in France was attributable to the 28.8% of the population living in its four largest cities.
- In the same year, the UK generated 40.8% of GDP from the 33.1% of its population living in its largest four cities.
- In 2009, China generated 40% of GDP from just 16.6% of the population living in its 35 largest cities.
- In the developing world, residential floor area per capita is increasing and the number of people per household is decreasing.
- Residential floor area per capita has been doubling every 14 years in China since the late ’70s. The figure currently stands at around 32 square meters, compared with 85 square meters in the United States.
The report contains interesting facts and projections throughout.