DELHI: Mumbai has slipped to 28th position in the list of world's most expensive locations for high-end rental apartments sought by expats but it still remains the costliest city in India, according to HR consultant ECA International.
Mumbai was at the 17th position globally last year, but its ranking has fallen to 28th in 2014 list of most expensive locations for high-end three-bedroom rental apartments, due to rupee depreciation. Rents for an unfurnished three-bedroom apartment in a sought-after area of Mumbai average USD 3,760 per month (Rs 245,000/month).
"Mumbai remains India's most expensive location to rent a high-end three bedroom apartment and is the 7th most expensive in Asia," ECA International said in a statement.
Hong Kong remained the most expensive location in the world despite rents falling for the second consecutive year, followed by Moscow (2nd), Caracas (3rd), New York (4th) and London at the fifth position.
ECA is the world's leading provider of knowledge, information and technology for the management and assignment of employees around the world.
It publishes annual accommodation reports for more than 180 locations to assist companies in formulating accommodation policy and fix housing allowance for international employees.
The ranking is based on data from this reports, which provide comprehensive information for locations worldwide on the rental trends, types of accommodation and districts commonly sought by expatriates.
"While rental prices in Mumbai have remained largely static over the past 12 months, a weaker rupee has meant that the cost of renting a 3-bed high end apartment actually fell by about 15 per cent when converted into US dollars for comparison. Mumbai has fallen to 28th spot in the global list - down from last year's 17th position," ECA said.
New Delhi fell in the global ranking from 29th to 43rd spot. While rents in the national capital rose around 4 per cent in local currency over twelve months, the cost of renting a high-end three bed apartment fell 11 per cent in US dollar terms and 20 per cent when converted to Euros.
Rental prices in Bangalore are among some of the lowest in the survey. "Rents in Mumbai are three times higher than Bangalore, despite having risen 5 per cent over the year. The city ranks 127th globally, down from its previous 123rd spot," ECA said.
Commenting on the report, ECA International Asia Regional Director Lee Quane said that housing provision for expatriate staff is an expensive, important and often emotive element of the overall remuneration package.
"Depending on how companies provide housing or allowances to their expatriates, major currency movements can have a big impact on costs. Companies need to consider this carefully when designing their expatriate housing policy and packages," Quane added.
Rental prices were collected in September 2013 and have been converted into US dollars for ease of comparison using the September 2013 exchange rate.