Need to move out and rent a place? These cities have some of the most expensive rates you’ll encounter.
This ranking is taken from the Deutsche Bank’s (DB) eighth annual survey of global prices and living standards: Mapping the World’s Prices 2019. Deutsche Bank measured the average monthly cost for a midrange two-bedroom apartment in the current year across 55 cities included in the study.
Hong Kong is at the top of the list, with apartments costing US$3,685 on average. This is followed by to US cities: San Francisco ($3,631) and New York ($2,909). Hong Kong retains its position as the most expensive from last year’s survey.
At the bottom of the list is Cairo in Egypt, with apartments only costing $285 on average. Second and third to the last are two of India’s cities: Bangalore ($298) and New Delhi ($363), respectively.
The data was collected by Deutsche Bank from online and secondary sources. In recording the prices, price distortions were included. Some possible sources of price distortions are:
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In order to maintain data quality and consistency, data points were collected from the same point in time each year. This is to eliminate the effect of seasonality in prices. This also improves intra- and inter- period comparability.
What determines the cost of rent?
Access Property Management Group identified five factors which impact the cost of rent:
- Number of bedrooms, which was fixed in the Deutsche Bank study
- Appliances and other amenities
- Curb appeal and condition
An independent study by RentHop studied what amenities, in particular, impact the cost of rent in major cities in the USA with the following results: