The investment consultancy firm Mercer has ranked the world’s most expensive cities to live in as part of its annual Cost of Living Survey.Contrary to the assumption that Western cities are the costliest, Southeast Asia and Africa feature heavily in the top 19, continuing the trend of emerging markets adjusting to massive outside investment.
Currency fluctuations were taken into account as well as the inflation of basic goods — especially the price of buying and renting local property.
For companies thinking of sending workers abroad, the cost of living in these cities should be a major consideration, Ilya Bonic, president of Mercer’s talent business, said:
“With volatile markets and stunted economic growth in many parts of the world, a keen eye on cost efficiency is essential, including a focus on expatriate remuneration packages. As organisations’ appetite to rapidly grow and scale globally continues, it is necessary to have accurate and transparent data to compensate fairly for all types of assignments, including short-term and local plus status.”
Keep scrolling to see the world’s 19 most expensive cities to live in.
19. Tel Aviv, Israel — We kick off with Israel’s second-most-populous city after Jerusalem. It’s also the most expensive Middle Eastern city to live in, probably thanks to its fantastic beach and relative tranquility from the surrounding region.
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18. Guangzhou, China — The first of a few Chinese cities on the list, Guangzhou drops three places from last year thanks to a weakening yuan against the dollar.
17. London — As expensive as everyone says London is to live in, this list suggests it could still be worse. If the much-discussed property crash does happen, expect it to get a lot cheaper soon.
Oli Scarff/Getty Images
16. Victoria, Seychelles Isles — You may not have heard of this idyllic city, but it was initially a British colony just off the coast of East Africa. Without much space and with high import costs, this place is not cheap.
15. Seoul, South Korea — Finding accommodation in Seoul, which has a metropolitan population of 25 million, is becoming a real problem, but residents can take heart that the city has the world’s best internet connectivity, making it a leading tech hub.
T-13. Lagos, Nigeria — As the picture below suggests, Lagos is a really busy city. Twenty-three million people live there, and increasing property and goods prices have seen it rise seven places on the list from last year.
REUTERS/Akintunde Akinleye
T-13. Bern, Switzerland — This is the least costly of three Swiss cities on the list, with Switzerland and its fluctuating Swiss franc notoriously expensive to foreigners. At least Bern has one of the highest qualities of life in the world.
12. Shenzhen, China — Shenzhen is lesser known than other Chinese cities like Beijing or Shanghai but is still huge, with well over 10 million residents. It has jumped up a couple of places from last year, again thanks to a declining currency.
Reuters/Bobby Yip
11. New York City — Like London, New York is notoriously expensive. Unlike London, it is getting more expensive to live in, jumping five places from last year. If your stay is longer than a holiday, bring lots of money.
10. Beijing — Into the top 10, and we have another Chinese entry. Beijing is known for its sometimes hazardous smog, but that does not seem to have made living there any cheaper.
Reuters
9. N’Djamena, Chad — The capital of the central North African country, N’Djamena serves as a major food hub and marketplace for the region. Its expense can be put down to an exploding population, which has multiplied by 100 in just 70 years.
8. Geneva — It may be expensive, but Switzerland sure is pretty. Like many global finance centres Geneva is pricey, but a declining currency has somewhat offset its cost of living for expatriates.
7. Shanghai — Shanghai is China’s most populous city, with over 24 million residents and counting. As with other cities in the country, a falling currency has seen it drop from last year, but new arrivals will still need to bring a lot of money.
6. Kinshasa, DR Congo — Another city you may not have heard of, Kinshasa is actually massive, with more than 13 million inhabitants. It has jumped seven places in the list since last year, partly because of concerted Chinese investment efforts.
5. Tokyo — No, that is not the Eiffel Tower but rather the Tokyo Tower, located in the heart of the vast city. Tokyo jumped six places from last year thanks to a strengthening yen, but Japan has always been notoriously expensive to visitors as it is.
4. Singapore — The world’s only island city-state, Singapore is known for its transport hubs and strict rules on litter. The World Bank called it “the easiest place to do business,” which is why companies all over the world flock to its shores — pushing up prices.
3. Zurich — The most expensive city in Europe, Zurich is a global centre for banking and has one of the best quality of life indexes in the world. That quality of life doesn’t come cheap.
2. Luanda, Angola — Africa’s most expensive city to live in, Luanda lies on the continent’s west coast and is actually one of the smaller metros on the list, with about 6 million residents. The high prices can be put down to the massive infrastructural investment taking place in response to the relentless gross-domestic-product growth from mining operations.
1. Hong Kong — The most expensive city in the world in which to live, Hong Kong retains a degree of independence while still sharing allegiance to China. It is a major financial centre thanks to its exceptionally free market practices, and it is also the most visited city on earth. Because of a ballooning population, Hong Kong has had to build upward — and prices in the city are similarly sky-high.
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