London overtook Hong Kong in 2012 to win the dubious accolade of world's most expensive city for office space, according to a survey of 126 major cities by property agency DTZ.
DTZ found, that on average, companies paid $23,500 per worker in 2012 to locate in prime office space in the West End, an area to the west of the historic City of London. This put London ahead of Hong Kong, which was 2011's most expensive office location.
While average costs per head in London remained stable compared with the previous year, the cost of occupancy in central Hong Kong fell 11 percent to $22,190 from $25,160 in 2011.
DTZ cited drops in rental rates for the decline in Hong Kong, with firms seeking to reduce operating costs by downsizing or moving out of the heart of the city.
Karine Woodford, DTZ head of occupier research, recommended that firms looking for a cost-efficient base in Asia search outside of Hong Kong.