© 2016 Informa UK Limited, trading as Taylor & Francis Group.Place branding has increasingly gained attention in last the two decades. However, there is a lack of measuring instrument for place branding effectiveness and subsequent place brand equity. This study develops a measurement instrument for customer-based place brand equity (CBPBE) for a place from the investment attractiveness perspective. Exploratory factor analysis followed by confirmatory factor analysis were used which resulted in an 11-item CBPBE scale. The dimensions of the scale consist of brand awareness, brand image, perceived quality, and brand loyalty. The study makes both theoretical and managerial contributions by offering a refined scale for the measurement of CBPBE which provides a tool for effective place branding activities and strategies.