London and Dublin are the most expensive cities in Europe in which to accommodate a worker, but they are heading in different directions.

Savills’ annual Live/Work index, which combines the average cost of office space and residential accommodation per worker, found that costs had fallen in London by 1% in local currency terms, but risen by 5% in Dublin in 2017.

London dropped below Hong Kong as the third most expensive place in the world to run a business, with New York still the most expensive.

Dublin is now the sixth most expensive place in the world to house and find an office for staff, with the increase in cost driven by rising residential rents. It is part of a cohort of smaller European cities like Amsterdam and Stockholm that are seeing costs rise fast, Savills data showed.

The average cost per worker is $96K in London and $61K in Dublin.

“While rents are obviously important to occupiers, attracting the right talent has a much greater impact on business success,” Savills Head of World Occupier Services Jeremy Bates said. “With new generations of footloose workers being attracted to roles based on location, rather than company name, occupiers need to ensure they choose the right neighbourhood and working environment when relocating.

“While costs are rising in some European cities, many still offer good value, particularly when considered alongside the lifestyle they provide. The major global cities, meanwhile, don’t come cheap but in some markets office property costs are slowing given their position in the rental cycle.”