London remains the world’s most expensive city for businesses to accommodate staff but the rapidly rising dollar has seen New York and Hong Kong close the price gap.
Savills’ Live/Work Index, which ranks cities based on the average cost of office and personal accommodation, found London’s cost per employee fell by 7.3% in the second half of last year, but was still the most pricey at $118,085 (£78,815).
San Francisco saw the highest inflation of any city in the top 16, with the costs of locating employees up by 55.1% since 2008 to $85,598, propelling it into fifth place.
The city has seen rapid rental growth driven by the tech sector, which has been moving into
the city from nearby Silicon Valley.
The strength of the dollar – which has appreciated substantially in the past 12 months on the back of strong US growth and anticipated interest rate rises – coupled with the weakness of the euro, saw Paris slip below $100,000 per employee for the first time since mid-2012.
jack.sidders@estatesgazette.com
