Savills says that businesses’ ‘talent first’ location strategies are causing a swift evolution in how cities are evolving to capitalise on their talent pipelines and become prominent hubs, driving real estate requirements.
London, New York and Singapore have topped Savills 2026 Global Talent Cities Index. Savills says that businesses’ ‘talent first’ location strategies are causing a swift evolution in how cities are evolving to capitalise on their talent pipelines and become prominent hubs, driving real estate requirements. Singapore was also seen ranking the highest among other Asian cities.
The Savills Talent Cities Index evaluates leading global business hubs across five key pillars: talent pool, liveability, competitive landscape, economic resilience, and cost efficiency, including both salary levels and real estate expenses.
Singapore and other cities at the top of the Index continue to serve as global command hubs for capital, talent and decision-making. These locations are characterised by deep talent pools, dense corporate ecosystems, strong venture capital networks and high-quality office stock that support regional and global headquarters.
The report groups cities into six distinct archetypes based on their role in attracting and retaining talent. While some serve as global command hubs for capital and decision-making, others compete through liveability, regional connectivity, specialist industry ecosystems or access to cost-effective talent pools. This framework highlights the different ways cities are positioning themselves to attract businesses and skilled workers in an increasingly talent-driven economy.
As a Global Business Leader city, Singapore faces key challenges such as escalating talent costs, high operating expenses, intense competition for skilled professionals, and ongoing difficulties in attracting and retaining talent.
Alan Cheong, Executive Director of Savills Research and Consultancy remarks, “Singapore’s strengths in protecting intellectual property and providing a safe environment for expatriates to live has attracted a critical mass of multinational companies to set up a regional base. This ecosystem has augmented itself over the years by attracting talent in various industries, who use Singapore as a platform to fan out to the region for their services.”
Acquiring talent has become increasingly complex. The index cites that the cities with the deepest talent pools are often among the most expensive places to live and work, intensifying competition for skilled labour. While talent is available, businesses must contend with rising costs, fierce competition, and retention challenges, particularly in markets where long commutes and high living expenses can erode employee engagement.
Conversely, cities that excel in liveability often rank lower in terms of talent depth and competitive intensity. While this may appear a disadvantage, it can translate into meaningful benefits. Lower competition for talent supports stronger retention, and a higher quality of life can foster greater employee satisfaction, productivity, and long-term engagement.
Sarah Brooks, Associate Director in Savills World Research, comments: “Traditionally, businesses clustered in a select few leading global cities, drawn by deep talent pools, access to capital and proximity to clients. Today, a new corporate geography is emerging. Major global cities remain crucial for senior decision makers to connect with key clients and capital, but they’re now part of wider office networks that support growth, provide access to talent and improve cost efficiency.
“This new dynamic is going to continue to drive demand for prime office space across the key global cities which top our Index. These locations have already seen significant rises in net effective costs as the pipeline of new development has been squeezed, leading to new requirements for space in cities further down the Index. The real estate in these ‘new’ location options must remain flexible to meet evolving needs or support the specialist functions that occupiers are looking to carry out, for instance in the form of global capability centres or tech-enabled lab space to support bespoke sector growth.”
Michelle Needles, Global Head of Enterprise Solutions, Global Occupier Services, Savills, adds: “The traditional relationship between workers and jobs has been flipped: increasingly, companies are not asking talent to relocate, but are moving to where they can find skills matched to their strategy. They are selecting the types of cities where the right talent wants to be – and will continue to want to be. This also includes deprioritising cities that are densely populated with competitors. When everyone goes to the same place, the competitive advantage disappears, and we see saturated hiring markets, wage inflation, and talent with too many options, making operations more fragile. The best talent strategy often involves places your competitors haven’t yet discovered.”
Read the full article here: Today's talent landscape: how companies are changing their location strategies | Savills Impacts