What is the world’s most expensive city to set up a business?
Hong Kong confirms its top position
A survey conducted by Savills International has confirmed Hong Kong’s position as the world’s most expensive city to set up a business due to its high residential and office property prices. The research has been carried out in the ten cities in the world that host the highest percentage of expats living and working in them and has shown that yearly costs of locating a hedge fund team have a strong influence on the investment decisions of big international groups.
The index measures the competitiveness of cities taking into account the price of commercial spaces and residential units and the amenities offered by the location, which can make the difference.
Hong Kong tops the list for the costs involved in setting up company and for its cost of living; London remains the second most expensive city in the world to accommodate a core business team; New York follows on the third position. The top position of Hong Kong depends on the 2012 home price rise (+15.2% for sales and + 3% for rentals) that has been slightly counterbalanced by the 3.7% fall of office rents.
London, instead, reported a 2.7% increase in the price of CEO homes, a 4.7% rise in the price to rent a residential unit and a 6.5% increase in the rent of office spaces for an international team. New York also saw the price of apartments increase (+12.2%).
Real estate costs of businesses are cheaper in Sydney (Australia), which has seen its appeal grow considerably. The Australian city proves very attractive to new and expanding businesses. It dominates the ranking for being the city offering the best value for money: it boasts excellent business opportunities, it is located in a good position in the Asian region, and it offers affordable costs and a very good life quality. It occupies the seventh position on the list and it is becoming an increasingly global city. There’s just a flow: restrictions on foreign buyers to purchase a home in the country may be an obstacle. Mumbai (India) is the cheapest city in the world to set up a hedge fund team.
Yearly costs of locating a social media company are lower everywhere in the world. Hong Kong and Mumbai keep their position as the most expensive and the cheapest cities respectively, but Paris appears to be one of the cheapest and most attractive cities in the world.
Main source: Savills International
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