London has risen the ranks over the past 12 months to become the world’s most expensive city to live in, according to a report by real estate company Savills.
The report combined the cost of living and office space for one employee for one year to measure the relative expense for each city, and found that London has the dubious honour of becoming the most expensive city in the world, with a yearly cost of $121,000.
The strong pound and rapidly rising cost of property has pushed London into the top spot over Hong Kong, with the average house prices in the British capital rising 11.7% over the last 12 months to over £500,000, according to the Office of National Statistics (ONS).
Savills warns that while cheap rent around Silicon Roundabout in East London helped put London on the map as a technology hub, the rapid gentrification of the area has pushed rents up and begun to drive startups out of the area.
Most expensive cities in the world
- Hong Kong
- New York
- Rio de Janeiro