Mayfair, an upmarket neighbourhood in London’s West End, is the world’s most expensive place to locate a business. Rents in the area are bei...

Mayfair, an upmarket neighbourhood in London’s West End, is the world’s most expensive place to locate a business. Rents in the area are being pushed up by hedge funds and private banks, according to a survey by Cushman & Wakefield, a London-based real estate agent. Average rents in Mayfair are €1,571 ($2,050) per square meter, compared with the central business district in Paris—the next most expensive rents—at €945 per square meter. Third on the list was Tokyo’s city centre, followed by Manhattan. C&W said rents in London’s Mayfair probably will increase further this year as financial-service companies and other corporations move into the area. Hedge funds firms such as Thames River Capital and Blackstone have their headquarters in the heart of Mayfair. About 125 hedge fund companies opened in London last year, with most of them setting up shop in the West End. Private banks such as UBS, HSBC Private Bank, GAM, Fleming Family & Partners are also based in the neighbourhood. UBS is based in the old MI5 (British secret service) building in Curzon Street and HSBC Private Bank recently moved into the old Conservative Club in St James’s Street.