Some 60 million to 70 million people will be added to the world’s urban population every year over the next three decades.
In a white paper released Monday, Prudential Investment Management discusses this unparalleled urbanization boom and the avenues for long-term investment it is opening.
According to the paper, 1 billion new urban middle-class consumers in emerging markets now have the means to make retail purchases, allowing for direct and diversified investment opportunities.
By 2020, it notes, a projected 4 billion people will use the Internet. As a result, global opportunities will abound for public and direct private investments in IT infrastructure, broadband, data centers and cell towers.
In addition, rapidly growing new cities in emerging markets will require expanded primary airports, major seaports and high-speed intercity railways.
Companies that provide anti-pollution solutions such as clean energy, waste management and water treatment are also attractive investment candidates as they service the nearly half of the world’s urban population that is exposed to unhealthy conditions.