London has overtaken Hong Kong to take second place in a global ranking of cities with the most investment potential.
London rose to second place in the index compiled by asset manager Schroders, up from third place in 2017 and eighth place in 2016.
Its position in the table has been boosted by strong employment data which feeds into income growth, a key component of the index.
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Schroders said the ranking “reinforces London’s position as a significant contributor to the UK economy and highlights the UK capital’s attraction as a location for real asset investing”.
London is the highest-positioned European city in the top 30, followed by Paris in 17th place and Munich in 28th.
The index is compiled according to factors such as the projected growth of the economy, the size of the population and disposable incomes over the next decade.
Hugo Machin, co-head of global real estate securities at Schroders, said: “We remain upbeat about London’s prospects. London has unmatched attractions, from green spaces to a vibrant cultural and entertainment scene.
“People want to live and work there and that means London can attract the world’s most skilled employees. London, like a number of other true global cities, remains at the centre of the global economy despite challenges surrounding Brexit.”
US cities had a strong showing in the rankings with Los Angeles retaining the top spot and New York in fourth and Boston in fifth.
The performance of the US cities was supported by a fall in jobless claims as the US neared full employment.
The top ten was rounded out by Chicago, Shanghai, Beijing, San Francisco and Houston.
Machin said: “Large cities with broad economies rank well in the index, as scale remains an important part of the analysis. Marrying idea generation to the scale of a city is why certain cities score consistently well and why they are attractive for investing in real assets for the long-term.”