Spotlight | Cambridge:

building its global future

Cambridge
Cambridge: building its global future

15 September 2017, by Savills Research

Cambridge is already a globally successful city. Yet its success risks being held back by looming shortages in the commercial and residential markets, and by infrastructure bottlenecks

Cambridge continues to grow as a hub of global importance for bioscience and technology research and development. It can maintain a competitive edge as labour costs are up to 32% lower than in the US. See 'A global player'.

 

The commercial development pipeline is undersupplied with only 1.3 years of office/lab space remaining. The challenge is to provide the right space for more larger-scale occupiers. There is also a shortage of startup and grow-on space. See 'Investing for business growth'.

Median house prices in the city are 13.5 times more than median earnings, almost twice the national average. Values are equivalent to parts of London. With no obvious trigger for a correction in prices, there is a case for extending the 40% Help to Buy equity loan scheme to Cambridge. See 'New jobs need new houses'.

Both the city and surrounding area need to continue to provide more housing at a range of price points, particularly as housing affordability becomes stretched. Economic growth will be hindered if employees of all levels are priced out of the area. See 'Cambridge buyers'.

Local and central government has a crucial role to play. Future commercial and residential growth needs to be supported by strong and timely new infrastructure. There is scope for further action with newly devolved powers and funding. See 'Trains, planes and cycle lanes'.

Articles from Spotlight: Cambridge: building its global future

A global player

15 September 2017

A global player

Cambridge is undoubtedly a successful and world-leading research centre, particularly for biosciences. However, more of the right space must now be delivered to enable the city to maintain its competitive edge in a global market

Investing for business growth

15 September 2017

Investing for business growth

With strong levels of venture capital investment, the challenge for Cambridge is to provide the right space for start-ups, growth companies and large international corporations

New jobs need new houses

15 September 2017

New jobs need new houses

Cambridge is a popular market, but needs to increase housing delivery across a range of price points and tenures to address affordability

Cambridge buyers

15 September 2017

Cambridge buyers

What are the challenges for different buyers in the Cambridge market? We examine the needs of the downsizer, first-time buyer and family upsizer

Trains, planes and cycle lanes

15 September 2017

Trains, planes and cycle lanes

Cambridge’s real estate requirements can only be met if they are supported by timely, well-planned and integrated infrastructure that links the city with the world beyond

 
 

Key contacts

Jim Ward

Jim Ward

Director
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7409 8841

 

Steven Lang

Steven Lang

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8738

 

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