According to a latest study by real estate agents, Savills, on Tuesday 1st March, London has topped the list of world’s most expensive cities, while followed closely by New York and Hong Kong, both at ranks 2 and 3 respectively.
Reportedly, Savills compared the costs of renting both residential and office accommodation per person across some of the most leading cities around the globe, and the results revealed London to be the most costliest city to live and work in. Moreover, the study revealed that the cost of accommodating per employee in London is more than double than that of Sydney, Los Angeles or Chicago.
The research suggested that the average total cost of accommodation per worker in a year in the 20 cities measured is $56,855, which ranges from $16,500 in Rio de Janeiro to $112,800 in London, closely accompanied by New York and Hong Kong.
In addition, India’s Mumbai was listed at #17th, ranking just ahead of Berlin, Johannesburg and Rio de Janeiro on a list of the world’s 20 most costly cities.
Yolande Barnes, head of research at Savills, told:
“The productivity of cities and their value to global businesses clearly has a pronounced effect on demand and hence rental costs. The highest ranking global cities, London and New York, are also the most expensive for businesses and workers to occupy.”
“World cities can become a victim of their own success when rents rise to the point where affordability becomes an issue.”
“Looking forward, increasing the supply of high quality work-space will be crucial for emerging cities such as Rio de Janeiro, Mumbai and Lagos but this stock might not have to be international-style office blocks, if a more local low or mid-tech solution is more appropriate”
“The vast majority of work-spaces across the globe in both emerged and emerging economies remain small-scale, informal and local buildings rather than international architectural-style, plate glass fronted offices.”
Source : Hindustan Times