London’s magnetic appeal continues to draw a global audience, from students and entrepreneurs to tourists and corporate titans. The city’s swagger is reflected in its strong international traveller spending, which in 2024 reached almost €18.9 billion (up from €14.9 billion in 2023) and secured London the third-highest amount globally, outpacing destinations like New York and Dubai.
Benefiting from a softer pound, London has remained a compelling bucket-list destination. Heathrow Airport recorded record-breaking arrivals, exceeding pre-pandemic passenger levels, and Gatwick Airport’s recent €274-million upgrade underscores London’s excellent infrastructure, enhancing the visitor experience with new concourses and improved amenities. The city’s airports, not surprisingly, rank #1 in our Top 100 cities.
A tourist tax on all these overnight stays is also planned (somehow, the city never bothered to do this previously), and it’s estimated the initiative will bring in €274 million a year to fund city services and infrastructure. If it happens, expect a 2027 implementation.
Beneath these tourist triumphs lies a luxury property market experiencing a fascinating paradox that savvy investors are exploiting. High-end home sales have dropped sharply as new tax policies put off many wealthy international buyers, pulling prices lower and leading to a glut of supply.
Americans aren’t deterred.
They now form the largest demographic of overseas buyers in London, accounting for 25% of prime purchases in the city last year, up from 18% in 2023, according to Beauchamp Estates.
“Americans are taking advantage of the markets being relatively flat,” said Ugo Arinzeh, an American real estate consultant based in London, in an interview with The Wall Street Journal. Real estate agents say they have never had as many inquiries from US clients, prompted by favourable exchange rates and political concerns back home.
The value proposition is compelling: according to data from Knight Frank, US $1 million (€857,000) now buys 34 square metres in London, compared with only 23 square metres a decade ago.
This sustained investment confidence is palpable in the city’s luxury hospitality renaissance. On the heels of the Peninsula London near Hyde Park Corner comes the equally captivating Raffles London at The OWO, the meticulously restored Old War Office, now hosting stunning guest rooms and restaurants by Michelin-starred chef Mauro Colagreco and turning the previously quiet Whitehall area into a chic nightlife hotspot. Here too, Americans comprise the largest demographic of buyers of the OWO’s private apartments, which can cost up to €22.7 million.
Newer still are the Newman Hotel, an independent boutique new-build from Kinsfolk & Co in the creative village of Fitzrovia in central London, and the Chipperfield-designed The Chancery Rosewood in Mayfair, which has already been crowned the world’s best new luxury hotel.
American institutional real estate interest is voracious, with US funds investing €3.50 billion into UK commercial property in the first quarter of 2024 alone. High-profile acquisitions, including MCR’s purchase of the iconic BT Tower for transformation into a luxury hotel, and Starwood Capital’s substantial entry with a €930-million acquisition of 10 Radisson Blu Edwardian hotels, reinforce London’s buoyant property market.
Architecturally, London’s skyline is undergoing its most dramatic transformation since Christopher Wren rebuilt the city after the Great Fire. In 2023 alone, planning applications for 64 towers of more than 20 storeys were submitted. Although only six received planning approval, some 270 skyscrapers have been given the green light in the past decade, according to official data from the Greater London Authority, analysed by the New London Architecture think tank. There are currently 583 tall buildings in the planning pipeline.
Even if just a fraction of these get built, London’s skyline is poised to change forever.
“Tall buildings have changed the face of London substantially over the last 20 years and will continue to do so,” says Nick McKeogh, the chief executive of NLA, which has published an annual Tall Buildings Survey since 2013, according to The Times. “To meet London’s housing needs, densification through tall buildings is not just necessary, it’s an opportunity for innovation and growth.”
Tower Hamlets topped this year’s list, with 17 applications for 20-storey-plus towers, including the €591-million, 1,600-home Orchard Wharf regeneration project near the East India Docks. The scheme includes seven potential buildings between nine and 25 storeys tall. Southwark follows with 10 applications, including Berkeley Homes’ Borough Triangle with four towers of up to 44 storeys delivering 900 homes, and the controversial Aylesham Centre redevelopment in Peckham, an 867-home scheme by Berkeley Homes with buildings ranging from four to 20 storeys.
The average tall building completed in 2014 was 26 floors, shooting up to 36 floors in 2022 and moderating to 29 floors in 2024. While 2024’s residential tower applications totalled 13,000 homes – significant against the capital’s 35,000 total completions – they remain well short of the government’s 80,000 annual target for London.
The ambitious “Canary Wharf 3.0” project in particular exemplifies London’s reinvention, blending traditional banking spaces with a mixed-use community and Europe’s largest life sciences centre, a 76,400-square-metre research hub.
This transformation underpins London’s position as Europe’s top city for inward investment in 2023, according to EY, surpassing traditional rivals like Paris and Frankfurt while competing globally with financial centres like Singapore and Hong Kong.
London’s rise as India’s premier location for tech investments has reshaped the city’s global appeal, exemplified by innovators like InMobi Advertising, iGene Media and VenPep Solutions choosing London as a gateway to international markets. Climate tech, notably, is experiencing meteoric growth, with companies like Allume, Cloverly and Einride electing to scale in London.
All to say that the #1 ranking in our Large Companies subcategory is safe for a while.
Efforts to better connect the city’s attributes are underway, with both tube expansion projects and ambitious placemaking like the highly anticipated Camden Highline, slated to open in 2027. Inspired by New York’s acclaimed High Line, this 1.6 kilometre-long elevated greenway symbolises London’s commitment to enhancing urban livability through creative renewal projects.
Mayor Sadiq Khan, re-elected in May 2024 for an unprecedented third term, continues to pursue his vision of a “fairer, safer, greener” London, aiming to construct 40,000 new council homes by 2030 and driving ambitious plans for net-zero carbon emissions by the end of the decade. This synergy, bolstered by alignment between city leadership and the national government, promises to deliver tangible benefits to residents and businesses alike.
The city’s strategic vision is encapsulated in the ambitious London Growth Plan, developed by City Hall and London Councils, which aims to harness London’s strengths in finance, technology and sustainability to drive inclusive economic growth powered by the planet’s third-most-educated residents. Prioritising productivity growth, the plan targets raising London’s economic output significantly by 2035, creating 150,000 high-quality jobs by 2028 and driving inclusive prosperity through extensive investment in affordable housing, transportation infrastructure and skills training.
City marketing organisation London & Partners’ Tourism Vision sets an ambitious goal of positioning London as the most visited, sustainable and diverse global city destination by 2030. Recognising the tourism industry as vital to London’s economy, the strategy aims to boost international visitor spending to €24.4 billion annually and attract 3 million more visitors compared to pre-pandemic levels.
Investment promotion through Opportunity London, a public-private partnership, is targeting €115.7 billion of inward capital focused on low-carbon infrastructure and real estate, underpinning sustainable and inclusive growth.
“2026 is another year to watch for London, as the capital city undergoes major growth and transformation including the opening of two major museums (London Museum and V&A East), new theatres and world-first events like Pro Climbing League,” says Laura Citron, CEO of London & Partners. “London is truly Europe’s global city: with a trillion-dollar economy, more green space than any city on the continent and unrivalled connections to the rest of the world. As London’s growth agency, we’re really excited to be part of this ongoing evolution and we’re delighted to receive this recognition.”