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The 20 most expensive cities to live and work in

Growth without social, economic, or environmental loss is perhaps one of the biggest challenges facing our world cities

Oscar Williams-Grut
Wednesday 02 March 2016 16:26 GMT
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Some of the cities found to be most expensive may surprise you.
Some of the cities found to be most expensive may surprise you.

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Upmarket property agent Savills has produced its annual ranking of the most expensive cities to live and work in.

The index measures the combined cost of residential and office rental per person per year across leading world cities to give an idea of how much it takes to maintain an employee in any given city.

While it's aimed at employers — giving them an idea of labour costs — the fact that it includes property prices means that it gives everyone a good idea of the relative cost of living in various cities.

Yolande Barnes, head of Savills world research, says in an emailed statement: “World cities can become a victim of their own success when rents rise to the point where affordability becomes an issue.”

She continues:

Rapid urbanisation demands supply elasticity — the test for the top Alpha cities is to supply new business quarters and residential neighbourhoods while capturing the characteristics that made the city attractive in the first place. Growth without social, economic, or environmental loss is perhaps one of the biggest challenges facing our world cities today.

The average total cost of office and housing accommodation per worker per year in the 20 cities measured is $56,855 (£40,654). Savills looked at a combination of established world cities and up-and-coming rivals, dubbed “upstarts” by Savills.

Check out the ranking of the most expensive cities below:


20. Rio de Janeiro — $16,500 (£11,819)

Revellers of Estacio de Sa samba school perform during the carnival parade at the Sambadrome in Rio de Janeiro, Brazil
Revellers of Estacio de Sa samba school perform during the carnival parade at the Sambadrome in Rio de Janeiro, Brazil

Savills world class city score: 37.5.

Population: 12.4 million.

Live/work cost per person per year: $16,500 (£11,819).

Increase in number of people living/working since last year: -9%.

Increase in the last 5 years: 18%.


19. Johannesburg — $20,700 (£14,828)

The Johannesburg skyline
The Johannesburg skyline (Getty)

Savills world class city score: 55.3.

Population: 8.6 million.

Live/work cost per person per year: $20,700 (£14,828).

Increase in number of people living/working since last year: 4%.

Increase in the last 5 years: 30%.


18. Berlin — $27,700 (£19,843)

Berlin skyline
Berlin skyline (KAY NIETFELD/AFP/Getty Images)

Savills world class city score: 55.4.

Population: 4.3 million.

Live/work cost per person per year: $27,700 (£19,843).

Increase in number of people living/working since last year: 3%.

Increase in the last 5 years: 20%.


17. Mumbai — $28,400 (£20,344)

Thane, near Mumbai (Bombay), India
Thane, near Mumbai (Bombay), India (en.wikipedia.org)

Savills world class city score: 48.3.

Population: 19 million.

Live/work cost per person per year: $28,400 (£20,344).

Increase in number of people living/working since last year: 5%.

Increase in the last 5 years: -2%.


16. Dublin — $36,500 (£26,147)

(Picture credit: JannHuizenga/iStock)
(Picture credit: JannHuizenga/iStock) (JannHuizenga/iStock)

Savills world class city score: 50.1.

Population: 1.7 million.

Live/work cost per person per year: $36,500 (£26,147).

Increase in number of people living/working since last year: 6%.

Increase in the last 5 years: 28%.


15. Shanghai — $43,700 (£31,304)

(Picture credit: AFP/Getty)
(Picture credit: AFP/Getty) (AFP/Getty)

Savills world class city score: 60.1.

Population: 24.8 million.

Live/work cost per person per year: $43,700 (£31,304).

Increase in number of people living/working since last year: 3%.

Increase in the last 5 years: 18%.


14. Chicago — $44,700 (£32,021)

The Chicago skyline along Lake Michigan.
The Chicago skyline along Lake Michigan. (AFP/Getty Images)

Savills world class city score: 62.3.

Population: 9.6 million.

Live/work cost per person per year: $44,700 (£32,021).

Increase in number of people living/working since last year: -1%.

Increase in the last 5 years: 10%.


13. Moscow — $48,300 (£34,600)

Fireworks light the night sky over the Kremlin's Spasskaya tower.
Fireworks light the night sky over the Kremlin's Spasskaya tower.

Savills world class city score: 55.

Population: 12.2 million.

Live/work cost per person per year: $48,300 (£34,600).

Increase in number of people living/working since last year: -9%.

Increase in the last 5 years: -17%.


12. Los Angeles — $48,600 (£34,815)

Downtown Los Angeles at night
Downtown Los Angeles at night

Savills world class city score: 63.1.

Population: 13.3 million.

Live/work cost per person per year: $48,600 (£34,815).

Increase in number of people living/working since last year: 9%.

Increase in the last 5 years: 24%.


11. Miami — $49,000 (£35,101)

Deco delight: classic hotels line Miami's Ocean Drive
Deco delight: classic hotels line Miami's Ocean Drive (AFP/Getty)

Savills world class city score: 52.4.

Population: 5.8 million.

Live/work cost per person per year: $49,000 (£35,101).

Increase in number of people living/working since last year: 4%.

Increase in the last 5 years: 26%.


10. Sydney — $49,500 (£35,459)

Loud and proud: Sydney comes alive during Mardi Gras
Loud and proud: Sydney comes alive during Mardi Gras (Tourism Australia)

Savills world class city score: 64.1.

Population: 4.9 million.

Live/work cost per person per year: $49,500 (£35,459).

Increase in number of people living/working since last year: 2%.

Increase in the last 5 years: 9%.


9. Dubai — $58,300 (£41,760).

Look sharp: the Burj Khalifa towers over Dubai
Look sharp: the Burj Khalifa towers over Dubai (Lester Al i / Dubai Tourism)

Savills world class city score: 61.1.

Population: 2.4 million.

Live/work cost per person per year: $58,300 (£41,760).

Increase in number of people living/working since last year: 4%.

Increase in the last 5 years: 71%.


8. Singapore — $60,600 (£43,410)

The Supertree Grove is illuminated during the Gardens by the Bay, Light and Sound show in Singapore.
The Supertree Grove is illuminated during the Gardens by the Bay, Light and Sound show in Singapore.

Savills world class city score: 71.

Population: 5.5 million.

Live/work cost per person per year: $60,600 (£43,410).

Increase in number of people living/working since last year: -4%.

Increase in the last 5 years: -6%.


7. Lagos — $63,000 (£45,130)

The Lagos skyline
The Lagos skyline

Savills world class city score: 23.5.

Population: 12.2 million.

Live/work cost per person per year: $63,000 (£45,130).

Increase in number of people living/working since last year: N/A.

Increase in the last 5 years: N/A.


6. San Francisco — $66,300 (£47,490)

Sarfraz and San Francisco's tallest skyscraper
Sarfraz and San Francisco's tallest skyscraper

Savills world class city score: 55.8.

Population: 4.5 million.

Live/work cost per person per year: $66,300 (£47,490).

Increase in number of people living/working since last year: 13%.

Increase in the last 5 years: 49%.


5. Tokyo — $69,800 (£50,000)

The Tokyo Bay skyscraper
The Tokyo Bay skyscraper (KPF)

Savills world class city score: 74.9.

Population: 37 million.

Live/work cost per person per year: $69,800 (£50,000).

Increase in number of people living/working since last year: 0%.

Increase in the last 5 years: 4%.


4. Paris — $78,200 (£56,019)

Holy water: Notre-Dame Cathedral on Ile de la Cité
Holy water: Notre-Dame Cathedral on Ile de la Cité (Daniel Thierry)

Savills world class city score: 77.5.

Population: 12.5 million.

Live/work cost per person per year: $78,200 (£56,019).

Increase in number of people living/working since last year: -4%.

Increase in the last 5 years: 1%.


3. Hong Kong — $103,200 (£73,920)

Shopping by twilight in Hong Kong
Shopping by twilight in Hong Kong

Savills world class city score: 70.5.

Population: 7.3 million.

Live/work cost per person per year: $103,200 (£73,920).

Increase in number of people living/working since last year: 3%.

Increase in the last 5 years: -3%.


2. New York — $111,300 (£79,730)

New York's skyline.
New York's skyline. (AFP/Getty Images)

Savills world class city score: 87.4.

Population: 20.2 million.

Live/work cost per person per year: $111,300 (£79,730).

Increase in number of people living/working since last year: 5%.

Increase in the last 5 years: 39%.


1. London — $112,800 (£80,805)

An artist's impression of how the City skyline will look upon One Undershaft's completion
An artist's impression of how the City skyline will look upon One Undershaft's completion

Savills world class city score: 87.6.

Population: 14.9 million.

Live/work cost per person per year: $112,800 (£80,805).

Increase in number of people living/working since last year: 2%.

Increase in the last 5 years: 18%.

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Read the original article on Business Insider UK. © 2015. Follow Business Insider UK on Twitter.

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