According to a UK study, Mumbai is the 17th most expensive city. London has been ranked as the world’s most expensive city to live and work, ahead of the cities such as New York and Hong Kong. Mumbai is the only Indian city that has ranked in the 20’s.

It comes as a surprise, as Mumbai has been ranked ahead of Berlin, Johannesburg and Rio de Janeiro by the UK real estate firm Savills survey.

The result has been obtained by comparing the total annual cost of the renting both residential and office accommodation per person in some of the world’s leading cities.  According to the firm Savills report, it is providently visible that some of the cities are becoming more and more expensive every day. For reference, London is 18 percent more expensive than it was five years ago.The cost of living in the London is more than double the cost of other cities such as Sydney, Los Angeles and Chicago.

Yolande Barnes, head of Savills World Research, said, “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”.

She further explained that the  productivity of cities and their value to global businesses clearly has a strong effect on demand and hence the increased rental costs. During her research , she found that accommodation for the average Londoner, calculated as a total of housing and office rental costs  comes to 80,700 pounds a year, compared to 79,600 pounds in New York and 73,800 pounds in Hong Kong.

Savills has put together its study to act  an indicator for companies of the cost of doing business in different world cities.

Information Source-profit.ndtv.com

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