_How London’s Talent Pool Will Shape Its Real Estate

As its population swells to more than 10 million people, London is set to reach megacity status by 2030 – a growth rate that outstrips other European cities. New research revealed by The London Report 2020 says a key feature of London’s competitiveness is its talent pool.

A growing, highly skilled talent pool

According to Matthew Bowen, partner, residential research, the capital’s edge comes from a growing younger and more dynamic population. He explained: “The forecast change in 20 to 29 year olds will see London have the highest concentration of this age group in Europe. This will rubber stamp London as a magnet for talent – especially in relation to next wave technologies, media and digital.”

This younger population is a function of London’s higher education system – London’s 38 universities form the largest concentration of higher education in Europe, while three of the city’s institutions (Imperial College London, UCL and LSE) are consistently rated as among the 20 best universities in the world.

But beyond this, London has a knack for enticing its students to stay – 70% of London’s graduates end up living and working in the city, and the pool is set to widen. By 2030, London’s student population is set to increase by over 30,000.

However, talent-pool growth is not exclusive to London’s younger population. London is experiencing an increase in its older population, too; its 50+ workforce has grown by 50% over the last ten years by 40,000 people per annum. 

Three elements which will advance London

Matthew Bowen continued: “These three elements of London’s demography: its critical mass, its highly skilled workforce and its increasingly multigeneration population will sustain and advance London as the hub for world-class talent.”

But this in-demand talent will in turn be demanding. According to Lee Elliott, partner, global head of occupier research, “The war for talent still rages. 54% of companies across the globe report talent shortages – which is the highest in over a decade.”

The demands of the in-demand

Today’s employees are less motivated by financial rewards and status than in the past. They are more concerned with values, contributions, progression and purpose – all of which can be supported by the real estate they work in.

For the workforce, the office is becoming a place of innovation rather than administration, a place of collaboration rather than isolation and a place that is an extension of our social lives. Despite the advent of remote working, the office is a place we spend, on average, 90,000 hours of our lives.

The trick to meeting this demand boils down to three factors: customer service that truly listens and responds, amenity-heavy environments that support health and wellbeing, and an experience that is truly first-class. 

Want to find out more? Explore The London Report’s interactive digital content experience.