Parisian properties most expensive to rent

Paris has been named as the most expensive city in the world for those seeking rental accommodation.

According to figures published by Savills, Paris is now marginally ahead of London in terms of how much it costs to rent a property, while it is also the third most expensive location in which to purchase a home.

The average yield for rental properties in Paris currently stands at around 4.5 per cent, which is lower than the return achieved on assets in New York, daily rental accomodations in Moscow, London and Sydney.

Yolande Barnes, head of the firm's residential research division, highlighted "strong occupier demand" and "relatively low capital values" as the two main reasons why investors are attracted to the French real estate market.

A recent CB Richard Ellis survey revealed the French capital is also the location of choice for commercial property investors, with the city attracting more funds in the second half of 2011 than its nearest rival London.