New York is the most expensive city for
an international company to send expat
staff on assignments, according to new
research.
International property firm Savills
analysed living and office costs for cities
across the world and found the costs of
basing expats in New York ratcheted up
by 2% in the first six months of the year.
The annual cost of a New York expat
employee is now $114,010
.
Hong Kong is just behind at 4100,984,
while London is in third place at $
100,141.
Savills also explained that the costs are
changing as the Brexit vote for Britain to
leave the European Union has depressed
the value of sterling and triggered swings
in many other currencies.
Brexit impacting living costs
Other places that have seen expat
employment costs shift dramatically as a
result of currency swings include Tokyo,
Japan, where a strong yen saw the
biggest global rise in office rents in dollar
terms.
The Olympic 2016 city of Rio de Janeiro,
Brazil, has rents fall, which resulted in a
5% drop in prices in local currency but a
14%-dollar increase.
Lagos, Nigeria, has zoomed up the
affordability rankings for employers with
rents dropping by a fifth and the local
currency weakening by 30% due to
devaluation set off by falling oil prices.
Savills argues that firms wanting to locate
to Europe should look at Berlin, Germany,
and Dublin, Ireland, as both have low
accommodation costs more akin to prices
in Mumbai, India, or Lagos.
Yolande Barnes, a Savills director, said:
“Office-based businesses in major world
cities will spend around one-third of their
total operating costs on accommodation
as commercial rents and demands on
salaries created by the cost of employees’
living accommodation.
“Fluctuations in these costs will have a
significant bearing on how competitive a
city is to employers.”
Expat costs in world cities
Rank
City
Employee cost
1
New York
$114,010
2
Hong Kong
$100,984
3
London
$100,141
4
Tokyo
$85,331
5
Paris
$82,880
6
San Francisco
$66,268
7
Singapore
$61,335
8
Dubai
$53,913
9
Sydney
$50,768
10
Los Angeles
$50,215
11
Miami
$49,946
12
Lagos
$45,817
13
Chicago
$45,456
14
Dublin
$45,147
15
Moscow
$43,966
16
Shanghai
$42,577
17
Berlin
$29,933
18
Mumbai
$28,592
19
Johannesburg
$20,905
20
Rio de Janeiro
$19,188
Source: Savills World Research

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