London most expensive city to live and work

Photo: Raph.ae

The firm’s latest Live/Work Index reveals that the UK is the most expensive city in the world for employees, followed closely by Hong Kong and New York.

The three cities have dominated the report since it was launched in 2008, with the provision of official and living space for companies now costing more than $110,000 per employee per year.

This is the second time that London has been ranked in the number one spot, after knocking Hong Kong off the top slot last year. The UK capital’s live/work now costs $118,085 per year, yet this is still significantly lower than the record $128,000 per year set by Hong Kong in 2011.

Indeed, in some good news for Londoners, the city’s costs have dropped 7.3 per cent in dollar terms since 2014. Hong Kong and New York have also seen costs drop 2.3 per cnet and 1.1 per cent respectively, but their lower rate of decline have helped to close the price gap with London.

Further down the rankings, a strong economic recovery and rising commercial and residential rents are combining with the strong dollar to make north Amercan cities increasingly expensive. San Francisco, in fifth position, posted the biggest increase, with growth in rent and other real estate costs up 4.8 per cent since 2014, and 55.1 per cent since 2008.

“San Francisco’s ranking confirms its status as a world-class city, despite its relatively small population,” comments Yolande Barnes, Director of World Research at Savills.

http://www.savills.co.uk/research_articles/186576/187068-0

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