London made it into the Top 10 in a new research listing the 15 most expensive cities to rent property in. Leader of the list, and therefore most expensive place to rent property in the world, is Beijing.
According to the new report by Global Cities Business Alliance, Beijing is the least affordable place to rent in the world, followed by Abu Dhabi and Hong Kong.
The London-based not-for-profit organisation had a closer look at major business cities around the world and assessed the scale of the housing crisis in each of them by looking at the average monthly rental cost and the average annual share of net earnings from 2015.
In Beijing, renters spend on average £550 a month on rent, an impressive 122.9% of the city’s average salary. With that in mind, it’s no surprise that the average daily commute in Beijing is 104 minutes long per round trip.
Abu Dhabi came in on second place, with rents averaging at £1,714 a month, or 69.5% of the renters’ average salary. In third place, Hong Kong will set renters back £1,345 a month or 64% of their monthly paycheque.
“Big cities like Beijing are victims of their own success,” Lesley Saville, CEO of the GCBA, said in a press release. “Rapid growth has magnetised workers, but they now need to deliver enough houses so that workers enjoy living there.”
The most affordable city in the list is Mexico City, with the monthly rent averaging at £268, followed by Sao Paulo where rent will set you back £335. Nevertheless, the GCBA’s report revealed that even in the cheapest cities, the upward trend in rental prices is significant. Mexico City’s rent, for example, has gone up 44.2% in the last 7 years.
And although having the cheapest rent, Mexico City also had the longest commute in the recent study, going up to 113 minutes.
“The wealthiest workers will always be able to afford to live in the biggest cities, but the danger is that talented workers starting their careers in many sectors will find themselves priced out,” Saville said in the press release.
Here the full Ranking:
15. Boston, US — £1073 ($1,540)/30% of income
14. Sao Paulo, Brazil —£335 ($480)/30.2% of income
13. Sydney, Australia — £774 ($1,111)/32.1% of income
12. Singapore — £720 ($1,033)/33% of income
11. Chicago, US — £960 ($1,377)/35.6% of income
10. Paris, France — £613 ($880)/36.2% of income
9. London, UK — £997 ($1,430)/50.4% of income
8. San Francisco, US — £1,968 ($2,824)/50.5% of income
7. Dubai, United Arab Emirates — £893 ($1,281)/55.4% of income
6. Mexico City, Mexico — £268 ($385)/58% of income
5. Shanghai, China — £361 ($518)/58.3% of income
4. New York City, US — £,1832 ($2,629)/63.1% of income
3. Hong Kong, China — £1,345 ($1,930)/64% of income
2. Abu Dhabi, UAE — £1,714 ($2,460)/69.5% of income
1. Beijing, China —£550 ($789)/122.9% of income
