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German Cities the Most Affordable For Global Graduates

15 October 2015

The report’s Millennials Cost of Living index shows that young graduates based in Berlin have 64 per cent of their net salaries left at the end of every month, after typical living expenses.  In comparison, young professionals from London are left with only 19 per cent, whilst graduates in Delhi and Hong Kong actually have a four and eight per cent deficit, respectively, at the month’s end.  

 
Variables including graduate starting salaries, cost of rented accommodation and utility bills, along with local prices for beer, coffees and the cost of groceries were assessed whilst compiling the index.  
 
Global Cities Millennials Cost of Living Index (ranked by affordability)
 

Affordability

ranking

City

% income remaining after expenses

1

Berlin

63.7%

2

Frankfurt

58.8%

3

Washington

51.2%

4

Edinburgh

48.0%

5

Jakarta

47.1%

6

Madrid

45.8%

7

Tokyo

44.5%

8

Sydney

42.5%

9

Dublin

42.0%

10

Cape Town

37.9%

11

New York

27.9%

12

San Francisco

22.9%

13

Amsterdam

21.4%

14

London

19.2%

15

Singapore

15.0%

16

Paris

12.0%

17

Bangalore

9.1%

18

Moscow

7.3%

19

Delhi

-3.6%

20

Hong Kong

-7.9%

 
The report analysed the cost of living in the emerging districts surrounding the world’s traditional central business districts of the Global Cities such as the areas surrounding Square Mile in London or New York’s Downtown  
 
James Roberts, Head of Commercial Research at Knight Frank, said: “Many of the new districts emerging around the traditional CBD’s have developed as vibrant and edgy places to live, and often appeal to young graduates starting out on their career. However, as the areas gain popularity, prices rise and often the young graduates struggle to remain in the area.”
 
The Millennials Cost of Living Index shows that in some cities graduates- in their desire to live centrally - are turning to their parents or getting in debt just to afford accommodation and the monthly basics in order to continue living centrally.  
 
Global Cities: The 2016 Report sets the context for investors by saying that five new cities, each the size of Los Angeles, will need to be built every year for the next five years to accommodate the expected 380 million new city dwellers. The report predicts that the number of people moving to cities over the next five years will be more than three times the current population of Japan, as they try to make the most of the economic advantages cities increasingly deliver. 
 
Global Cities : The 2016 Report is available in full from www.KnightFrank.com/GlobalCities