London was again the most expensive city in the world

A new global study was conducted among cities in the world to find out what the city holds the palm among the most expensive cities in the world.

London has become the most expensive city in the world for life and for work. The main reason for the high cost of the UK capital – increase in expenses on rental housing.

London has overtaken Hong Kong prices, which has led the annual ranking of most expensive cities for five years. Rounding out the four most expensive cities in the world new York and Paris, where the total expenditure on rent and rent office space cost an average of about £100,000 a year per employee.

The study was conducted on the basis of the so-called “Index Savills”

The index measures the total costs per employee for rental housing for him and his working space in 12 cities around the world. Fluctuations in the value of residential and office space reflects not only the strength of the residential and office market and the tax laws of these cities, but the impact of currency fluctuations on the cost of doing business in a particular place in the world. The strengthening of the pound sterling against other currencies and became the reason why, which put London on the top step of the podium. Traditionally, the index measures the cost of living in dollars.

Four of the most expensive cities in the world from this point of view, London, Hong Kong, Paris and York are in the Top from the very beginning of the emergence of index – since 2008, indicating stability in property markets of these cities as the residential sector and commercial.

In Hong Kong are now seeing lower rents for housing. But the more significant factor was the weakening of the Hong Kong pounds. According to the Savills index, these two factors led to the fact that the cost of living, as measured by the rental housing and office per person per year in Hong Kong has dropped to the level of 2008 and is now £116000 per year , and in London, mainly due to the strengthening of the pound, the cost of rent increased by 10.6% only for the first six months of the year. As a result, the cost of living in London index Savills rose to £121000 per year. Since 2008 in dollar terms, cost of renting of residential and commercial property in London has increased by 39%.

Despite the fact that London has moved in 6 years since 2008, from fifth to first place, the record in the sum of £128000 which was beaten by Hong Kong, never been beaten by any city in the world. And today Hong Kong remains the most expensive city in the world to buy residential property , which is still 40% more expensive than in London, although the gap is decreasing.

Tokyo Fell from third place on the cost of living on the fifth since 2008, also largely due to the dollar / yen currency fluctuations. However, the fall in the yen has led to improved competitiveness of the Japanese economy and its attractiveness for investors. Investors are particularly attracted to the relative cheapness of rental housing and offices – approximately £76000 per year contents per employee per year, which is much cheaper than in the four Top cities.

Rio de Janeiro and Sydney rose significantly beginning in 2008, 85% and 58%, respectively. While Rio de Janeiro remains very competitive city with a cost of just £32000 dollars. Mumbai is the cheapest city attractive to investors with the cost of £30000 pounds a year.

® Maxim Savitsky G. 25.09.2014

The most expensive London real estate for sale:

HENRY MOORE COURT, MANRESA ROAD, SW3 £ 12,000,000

KNIGHTSBRIDGE SW1X – £19.5 million

MONTPELIER SQUARE, KNIGHTSBRIDGE SW7 – £13.3 million

QUEENSBERRY PLACE – £ 12.5 million

SLOANE STREET, KNIGHTSBRIDGE SW1X – £ 12,950,000

Mansion on Mayfair £ 32,999,950

Luxury apartment – Hyde Park – £65 million