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Why is somewhere with so much against it such a great place for creatives to live and work? "That's simple -- it's because London's so dynamic," says Christopher Bailey, design director of Burberry, the once-dowdy British raincoat company that has been reinvented as a successful global fashion brand. "Creativity thrives here. It has to do with the people, their attitude, vibrance, and energy. You can work away in your little world and have your moment in the sun. That's very empowering. I've lived and worked in New York, Paris, and Milan, but right now I can't think of another city I'd want to live in more than London."

What has changed? Well, thanks to a lucky (and coincidental) combination of advances in technology and what were, until recently, a buoyant economy and cheap real estate, every creative sector in London has been on a roll in recent years.