Scots capital third cheaper than London for businesses

L Edinburgh ‘truly global city’ with cost advantages l Study examines cost of workspace and 100 employees

Edinburgh has been ranked one of Europe’s most competitive major business hubs in terms of cost, coming in a third cheaper than London, according to a new study.

Property consultancy Knight Frank in its 2018 Global Cities report compared for the first time the total expense of employing 100 people in the world’s leading cities, based on the cost of workspace and average salaries.

And it found that the total cost for Edinburgh came in at $3.5 million (£2.6m) as opposed to $5.2m in London. Scotland’s capital ranked more competitive than Dublin ($4.1m), Stockholm ($4m), Frankfurt ($3.8m), and Amsterdam ($3.5m).

Zurich was the most expensive city globally, where high salary costs in the banking and asset management sectors mean companies would pay $7.9m per year.

It was followed by New York ($6.9m), and then San Francisco ($6.7m), where the cost of employing a highly-skilled tech workforce increases total occupancy costs.

Alasdair Steele, head of Scotland commercial at Knight Frank, said: “Edinburgh continues to emerge as a truly global city – it’s becoming an increasingly popular destination for international businesses as well as a magnet for overseas investment capital.

“From a cost perspective, Scotland’s capital offers clear advantages over many of Europe’s major business hubs. Combined with its quality of life benefits, skilled workforce, and buoyant tech scene, there’s a compelling case for Edinburgh as the city grows from strength to strength.”

Lee Elliott, head of commercial research at Knight Frank, added that good access to high-skilled talent is a key factor in corporate real estate and location decision-making.

“But in a low-growth economic environment where margin protection and cost control is paramount, the cost of both employing and accommodating this talent is becoming important too,” he said.

“Edinburgh’s costs relative to other global cities are compelling. This provides a clear incentive for global companies to actively consider Edinburgh, particularly those in the tech and financial services sector, which need to attract and retain the best people, in state-of-the-art workspace.

“Although rival European cities do offer even lower employment and property costs, many global companies will see this as a false economy if they are unable to access the tech and creative talent they require, which Edinburgh has in great abundance.” The new owners of the Glenallachie Distillery near Aberlour have revealed their targets after completing the multimillion-pound acquisition of the Speyside site from global spirits giant Pernod. Pictured is whisky industry veteran Billy Walker with Trisha Savage, one of his business partners. The plan is to launch a range of “premium quality yet affordable” whiskies in domestic and export markets, eyeing particular potential in emerging markets as well as possibly the US.