The index assesses and ranks the growth and future prospects of 161 global cities, with London being the only city outside of China and the US to make the top 10.
Beijing was named as the top global city, with the five most desired features for cities being high projected growth, a growing population, excellent infrastructure, skilled workers with high disposable incomes, and top universities.
Schroders co-head of global real estate securities, Hugo Machin, said: “London has seen a small increase in the index.
“It still remains one of our favourite cities due to its highly skilled workforce, large tourist demand and cultural appeal, and we believe it will continue to thrive.
“Chinese cities continue to grow at a rapid rate as the country industrialises. GDP and retail sales are growing quickly.
“The only one of the five factors that holds Chinese cities back is disposable income, but the rate of growth there is strong even if the absolute number is below peers.”
Chinese cities dominate the index taking four out of the top five places on the list, with North America also featuring heavily, but Paris and Madrid are the only European cities other than London to make the top 30, in 12th and 28th place respectively.