The City of London financial district is second most expensive with an estimated total office cost of €3,500 per sq m ($400 per sf) per year, or €54,700 ($66,750) per person per year. And Canary Wharf in East London is in third place, costing €3,200 per sq m ($360 per sf) per year or €49,800 ($60,750) per person per year.

London is the most expensive city followed by Paris and Milan, driven mainly by office occupancy and fit out costs. London and Paris are also at the top of the residential costs, Milan however is below average. The Asian and Eastern European centres were the cheapest due to lower occupancy costs and fit-out costs.

But the good news for international businesses is that falling prime rents and occupancy costs have driven down the average bill across Europe by 2%, compared with a 1% increase in 2002. In the third quarter, the average annual cost per person of setting up an office in Europe was €36,200 ($44,165) or €2,300 per square metre ($260 per sf).