The cost of an office (per square metre)

1. London: 1,728 euros 2. Tokyo: 1, 213 euros 3. Paris: 991 euros 4. Moscow: 985 euros 5. New York: 976 euros 6. Hong Kong: 914 euros 7. Frankfurt: 851 euros 8. Geneva: 747 euros 9. Bombay: 669 euros 10. Milan: 668 euros Cost per square metre, including rent, taxes and service charges Source: Healey & Baker

The gap between commercial rent levels in the UK capital and major cities elsewhere in the world expanded during the last year, despite the global economic downturn which caused a cooling of the office rental market, according to the property consultant Healey & Baker's David Hutchings.

"The average cost for London rose slightly from last year's figure as property taxes and service charges offset lower rents," he said.

Prime office space in London cost 1,728 euros per square metre per year when rent, tax and service charges were included.

That was markedly more than other major cities, both in Europe, the US and Japan.

London beat Tokyo and Paris to the top spot, while Moscow came in fourth ahead of New York.

Bargain hunting

Companies looking for cheaper locations within the European Union could look to Vienna, Lisbon and Brussels where office space cost less than a quarter of the London prices.

Or they could locate in Helsinki where office space cost just 288 euros per square metre per year.

That was still twice as much as the cost of an office in Bangkok where the price was 116 euros per square metre.

Cheaper offices

The cost of office space fell in many cities during the last six-month period of 2001, the survey said.

The downturn in the hi-tech and telecoms sectors, the US recession and the aftermath of the events on 11 September were blamed.

"There are clearly going to be further areas of weakness ahead," said Mr Hutchings.