Revealed: The most expensive office locations in the world

 
Shruti Tripathi Chopra
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A general view showing Hong Kong 28 July, almost o
Hong Kong beats London as most expensive office location in the world (Source: Getty)

Hong Kong has overtaken London’s West End as the most expensive office location in the world, according to new research from Cushman & Wakefield.

​Strong demand for mainland Chinese companies and limited availability have pushed up annual prices per desk in Hong Kong by 5.5 per cent to $27,431(£20,592).

The report found that the cost of locating 100 workers in a Hong Kong office is equivalent to 300 in Toronto, 500 in Madrid or 900 in Mumbai.

Read more: Investment in the capital's commercial property set to top £20bn

Meanwhile, costs per desk in London’s West End have dropped 19 per cent to an average of $22,665 per work desk per annum since last year due to the fall in the value of the pound following the EU referendum.

The capital dropped to second place on Cushman & Wakefield's ranking but prices per desk in London remain twice as expensive as Paris or Frankfurt.

At a global level, the average annual cost per workstation rose by 1.5 per cent over the last 12 months, thanks to the Americas where costs increased by 4.2 per cent and Asia Pacific, where they were up 3.4 per cent.

Meanwhile, EMEA posted a fall of 1.3 per cent.

Report author Sophy Moffat said: “Hong Kong and London are by far the most expensive office markets in which to accommodate staff but secondary cities are beginning to compete in the digital age in ways not possible during the industrial age.

"Beneath the established global contenders, the likes of Stockholm, Austin and Seoul are moving up our cost rankings. Austin, which has risen to 21 on our list, is still 40 per cent cheaper than Silicon Valley and has become a tech hub in its own right.”

Read more: Commercial property investment in the City set for a record year

Rank

City (Region)

Workstation cost per annum US$

1

Hong Kong (Asia Pacific)

27,431

2

London West End (EMEA)

22,665

3

Tokyo (Asia Pacific)

18,111

4

Fairfield County (Americas)

17,414

5

San Francisco (Americas)

16,205

6

New York (Americas)

15,931

7

Silicon Valley (Americas)

15,004

8

Geneva (EMEA)

13,424

9

Sydney (Asia Pacific)

11,997

10

Paris (EMEA)

11,756

Read more: Office space take-up in London beat a 10-year average last quarter

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