Paris has leapfrogged perennial leader London to become Europe's most talked-about city online, and the exposure can correlate to increased foreign investment in several sectors, including real estate, according to a study of digital visibility.
The French capital moved from second place to the top spot after digital conversations including Paris increased 21% last year compared to 2022, according to Ing Media's Europe's Most Talked About Cities 2024 report. The study tracks online news stories, blog posts and some social channels, including X, formerly Twitter, and TikTok.
Paris also led the 59 other European cities in mentions related to foreign investment, including property acquisitions and development. Paris was the focus of 6 million, or 18.7%, of the mentions in conversations centered on inward investment with 6 million mentions, according to the Ing study. London was second with 5.2 million, or 16%, of overall mentions.
To gauge mentions tied to investment, Ing focused on stories and posts that mentioned a city and certain keywords, including foreign direct investment, inward investment, economic diversification and capital.
When some property investors decide which markets to consider, and people who need homes contemplate moving to a new country, they often start the process with online searches, said Jiyoung Jo, Ing's cities account manager. The more mentions a city has, the more likely they are to attract the attention of investors, renters, students and tourists, she said.
"After all, this is the 21st century, and cities have to compete against each other for visibility and investment," Jo said in an interview. "The perception of the place is strongly influenced by what they see online, especially if they haven't been there."
The Ing study, released this week at the Mipim show in Cannes, France, comes as direct investment in commercial property has dropped dramatically, according to JLL's new Global Real Estate Perspective report. Overall commercial property deals last year totaled $594 billion, a 44% decline from 2022, in what JLL called the lowest direct investment, including cross-border transactions, in more than 10 years. Direct investments are those aimed at acquiring a controlling interest in a business or property or expanding one's operations in an outside country.
Riaz Cassum, executive managing director of capital markets at JLL said at the Mipim show that he is optimistic that direct investment will increase globally this year as markets stabilize. He also said that while large institutional investors typically are quite savvy when researching where to place capital, a city's digital exposure level could become part of its general scorecard.
During the current real estate downturn, digital visibility can increase levels of interest among investors seeking shorter-term returns as opposed to firms with more patient capital, Jo said.
Paris' digital exposure level benefited last year from significant events, including Men's Fashion Week, Paris Fashion Week and the Rugby World Cup, Ing said. The city should get another online boost building up to and during the 2024 Summer Olympics, the firm said.
For London to reclaim the top spot, which it held for five years, it needs to focus on traits that make an international city attractive, advised Damian Wild, managing director at Ing.
"Growing your city brand’s soft power online helps to draw tourism, inward investment and international students, among other benefits," Wild said in a statement. "If we want brand London back on top, our research suggests we need to further nurture the qualities that makes us a truly global city – especially our culture, business community including our growing influence as a tech hub, and sport.”