London Living Costs Now Highest Globally, Says Report

By Fiona Moore, for 25 September, 2014

A new study from Savills, an international real estate agency, says that London is now the most expensive city to to rent living and working space, displacing Hong Kong from last year's top spot.

The report seeks to calculate the cost of accommodating local and foreign staff in 12 cities, taking into account the cost of accommodation, exchange rates, and additional living costs, such as local taxes and rates.

London tops the list at USD121,000, after residential prices rose by 18.4 percent last year. Savills said this is due to currency appreciation, a stronger domestic market, and more international investors.

Meanwhile, Hong Kong has seen falling residential rents and a weakening currency. The cost of purchasing residential property in Hong Kong remains 40 percent more expensive than in London however.

New York and Paris are the next most expensive cities, according to the index (both USD100,000), followed by Tokyo (USD75,000).

The cost of accommodating staff has risen by 39 percent since 2008, but fell by 23 percent in Tokyo. The greatest increase was for Rio de Janeiro (86 percent) – now just above Mumbai in 11th place.

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