The Growth Hub Index 2024 by Savills highlights Asia's rapid urbanization and economic dynamism, with 14 of the world's top 15 projected growth hubs located in the region. The index evaluates cities expected to see accelerated development by 2033 based on economic, population, and wealth indicators.
Among these, Bengaluru, India, emerges as the leading city, showcasing its status as a technology and innovation hub. Following closely are Ho Chi Minh City, Viet Nam, and Delhi, India, reflecting diverse growth drivers such as technology, manufacturing, and expanding middle classes. This trend underscores the region's dual focus on leveraging tech-driven advancements while maintaining traditional industries like manufacturing.
Factors Driving Asian Cities' Growth
Asian cities' prominence in the index is linked to their strategies for fostering growth. Many cities have capitalized on increasing personal wealth and a burgeoning middle class, which fuels demand for housing, education, and consumer goods. Moreover, investment in infrastructure and improved connectivity has positioned cities like Jakarta, Bangkok, and Manila as attractive destinations for businesses and investors.
The integration of innovation hubs further contributes to their appeal. These hubs draw new enterprises, stimulating demand for commercial real estate and skilled labor. Analysts emphasize that this can translate into better employment prospects, enhanced public health, and improved living standards—if urbanization is well-managed.
Growth Hub Index Methodology
The Growth Hub Index evaluates 230 cities worldwide, each with a GDP of at least $50 billion in 2023. It uses indicators across three dimensions:
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Economic Indicators:
- City GDP forecast for 2033.
- Projected credit ratings.
- GDP growth rate (2023–2033).
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Personal Wealth Indicators:
- Growth in GDP per capita.
- Increase in households earning above $70,000 annually.
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Population Indicators:
- Population growth rates.
- Migration trends.
- Future dependency ratios (2033).
This comprehensive approach identifies cities like Mumbai, Shanghai, and Bangkok as poised for robust expansion alongside Bengaluru and Ho Chi Minh City.
Opportunities and Risks in Urban Growth
The report highlights the transformative potential of rapid urbanization in Asia. Successful management of urban growth can lead to significant advancements in public health, education, and economic resilience. Conversely, mismanagement could exacerbate issues such as poverty, inequality, and environmental degradation.
With strategic planning and investment, Asia's growth hubs are set to redefine the global urban landscape, reinforcing the region's leadership in economic and social development by 2033.
