Urban neighborhoods just outside city centers are becoming attractive investment destinations globally as companies and developers seek new and affordable opportunities. These previously overlooked areas are now experiencing significant rent increases, rivaling primary central business districts.
For example, Berlin's Prenzlauer Berg neighborhood, known for its vibrant culture, has seen a 50% surge in prime office rents over the past five years. Other thriving neighborhoods include Chicago's Fulton Market with a 43% rent increase since 2019, Seoul's Gangnam neighborhood with a 24% rise in rents over five years, and Charlotte's South End with 33% growth. Even smaller markets like Minneapolis' North Loop have witnessed rent increases exceeding 13% in the same period.
JLL's report, "The Future of the Central Business District," highlights these flourishing areas as evolving creative, tech, and R&D clusters that are capturing investor attention. The report reveals that rental growth of more than 20% in the past five years is common in these submarkets.
Phil Ryan, JLL City Futures Global Insight Director, notes the transformation of these neighborhoods into vibrant communities with creative offices, residential spaces, boutique hotels, and curated retail products. He emphasizes the importance of placemaking, citing examples from Europe such as Berlin's MediaSpree and Prenzlauer Berg, where livability improvements and architectural distinction have played a key role.
Investing in these urban fringe neighborhoods poses challenges due to their limited footprint and saturation point. Assessing the area's liquidity, scalability, and long-term potential is crucial for investors. The ability to develop vertically, like in Chicago's Fulton Market, contributes to the neighborhoods' attractiveness and growth prospects.
While investing in these markets carries risks, such as market volatility and sizing demand for higher-end amenities, Ryan remains optimistic about the trend. He believes that off-core urban neighborhoods will continue to attract residents, businesses, and visitors, ultimately informing the revitalization of traditional central business districts in response to evolving work and travel patterns.
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Country |
Minimum Investment |
Estimated Time of Passport Issuance |
Visa Free Travel |
---|---|---|---|
$230,000 |
4 - 6 Months |
162 Countries |
|
€5,000,000 |
24 - 36 Months |
190 countries
|
|
$200,000 |
4 - 6 Months |
156 countries |
|
$250,000 |
5 - 8 Months |
100 countries
|
|
$235,000 |
4 - 6 Months |
160 countries
|
|
$750,000 |
6 - 12 Months |
90 countries
|
|
€600,000 |
15 - 17 Months |
176 countries
|
|
$250,000 |
6 - 9 Months |
166 countries
|
|
$240,000 |
5 - 10 Months |
159 countries
|
|
$130,000 |
2 - 3 Months |
117 countries
|
|
$400,000 |
3 - 6 Months |
137 countries
|
Country |
Minimum Investment |
Estimated Time |
---|---|---|
€40,000 |
18 - 24 Months |
|
€300,000 |
2 - 6 Months |
|
€250,000 |
5 - 10 Months |
|
€250,000 |
3 - 6 Months |
|
€2,000,000 |
6 - 12 Months |
|
€60,000 |
3 - 6 Months |
|
€150,000 |
6 - 8 Months |
|
$250,000 |
24+ Months |
|
$500,000 |
5 - 7 Months |
|
CHF 200,000 |
6 - 12 Months |
|
£50,000 |
4 - 6 Months |
|
$800,000 |
30 - 36 Months |
|
CAD 200,000 |
35 - 36 Months |
|
HKD 30,000,000 |
6 - 12 Months |
|
MYR 300,000 |
5 - 10 Months |
|
$10,000,000 |
5 - 10 Months |
|
$550,000 |
2 - 3 Months |
|
$375,000 |
2 - 3 Months |
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* Visa on arrival countries
Albania
Andorra
Angola
Armenia
Australia
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Bahamas
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Bangladesh
Barbados
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Belize
Benin
Bhutan
Bolivia
Bosnia and
Herzegovina
Botswana
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Cape Verde
Chile
China
Colombia
Comoros
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Grenada
Guatemala
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Ivory Coast
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Madagascar
Albania
Andorra
Angola
Armenia
Australia
Austria
Bahamas
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Bangladesh
Barbados
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Belize
Benin
Bhutan
Bolivia
Bosnia and
Herzegovina
Botswana
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Cape Verde
Chile
China
Colombia
Comoros
Costa Rica
Croatia
Cuba
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DR Congo
Denmark
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El Salvador
Equatorial Guinea
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Fiji
Finland
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Gabon
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Germany
Ghana
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Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
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Iceland
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Ivory Coast
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Kiribati
Kosovo
Kyrgyzstan
Loas
Latvia
Lebanon
Lesotho
Liechtenstein
Lithuania
Luxembourg
Macao
Madagascar
* Visa on arrival countries
Country |
Minimum Investment |
Estimated Time of Passport Issuance |
Visa Free Travel |
---|---|---|---|
$230,000 |
4 - 6 Months |
162 Countries |
|
€5,000,000 |
24 - 36 Months |
190 countries
|
|
$200,000 |
4 - 6 Months |
156 countries |
|
$250,000 |
5 - 8 Months |
100 countries
|
|
$235,000 |
4 - 6 Months |
160 countries
|
|
$750,000 |
6 - 12 Months |
90 countries
|
|
€600,000 |
15 - 17 Months |
176 countries
|
|
$250,000 |
6 - 9 Months |
166 countries
|
|
$240,000 |
5 - 10 Months |
159 countries
|
|
$130,000 |
2 - 3 Months |
117 countries
|
|
$400,000 |
3 - 6 Months |
137 countries
|
Country |
Minimum Investment |
Estimated Time |
---|---|---|
€40,000 |
18 - 24 Months |
|
€300,000 |
2 - 6 Months |
|
€250,000 |
5 - 10 Months |
|
€250,000 |
3 - 6 Months |
|
€2,000,000 |
6 - 12 Months |
|
€60,000 |
3 - 6 Months |
|
€150,000 |
6 - 8 Months |
|
$250,000 |
24+ Months |
|
$500,000 |
5 - 7 Months |
|
CHF 200,000 |
6 - 12 Months |
|
£50,000 |
4 - 6 Months |
|
$800,000 |
30 - 36 Months |
|
CAD 200,000 |
35 - 36 Months |
|
HKD 30,000,000 |
6 - 12 Months |
|
MYR 300,000 |
5 - 10 Months |
|
$10,000,000 |
5 - 10 Months |
|
$550,000 |
2 - 3 Months |
|
$375,000 |
2 - 3 Months |
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