Cities such as Mumbai, Shanghai and, more surprisingly, Sydney,
are the best value locations to house a business, according to a
new report.

Savills
World Cities Review shows that the most expensive cities were,
in order, Hong Kong, London and New York; almost three times the
price of other alternatives. As a fully economically developed and
fledging city, Sydney stands as particularly good value and is
likely to attract new investment from the Pacific region.

Savills has calculated the competitiveness of each city based on
the total of cost of real estate, while also accommodating
financial and creative business factors. Hong Kong, the most
expensive location, was £1,074,000, London second at £973,000 and
New York third at £949,000. The following three cities in order
were Paris, Tokyo and Singapore, with Sydney offering excellent
value at £602, 000, and Shanghai and Mumbai at £371,000 and
£318,000 respectively.

Sydney appears to offer particularly good value, with
Australia's new Significant Investment Visa attracting a large
number of investment inquiries from Asia. An economy which has
remained largely unaffected by the global recession offers an
excellent investment environment for new businesses.

Previously, according to Savills, Sydney's development into a
world city was constrained by restrictions on foreigners buying
homes. However, the new visa now allows migrant investors to invest
AUD$5m into property for a minimum of four years; this should
attract more investors and boost overall investment levels.

"In the intensely competitive global market for top talent, the
cost, quality and desirability of a city lifestyle is an important
unit of currency," said Yolande Barnes, director of Savills world
research.

"Business location choices sometimes have as much to do with
where the chief executive officer wants to live as economic
considerations, but the cost of residential and commercial
accommodation for an international business team can have a
significant impact on the bottom line.

"Our analysis shows the importance of looking beyond headline
rents, or assuming that commercial and residential rents work in
tandem," she explained.

The report highlights that there can be notable differences
between headline commercial rents and the actual final costs paid
by the tenant. Hong Kong is the most expensive financial sector
location for headline rents, but once all fees and taxes are
included, London becomes far the most costly world city.

London's place as one of the world's most
expensive locations is unlikely to undermine its relative
competitiveness, however. As a much sought-after location for
multi-nationals with a first-class culture for innovation, the
capital continues to encouraging investment and economic
growth.

The United Kingdom remained the most active market in real
estate investment last year which is particularly positive when you
take into account recent European financial difficulties.

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