Paris and Zurich may be overpriced but are outmatched by Singapore, Osaka and Hong Kong, according to the latest Worldwide Cost of Living Index. Europe is getting cheaper while New York is, once again, eye-watering.
Image: picture-alliance/robertharding/Ed Rhodes
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Singapore, Osaka and Hong Kong on Wednesday were named the world's joint most expensive cities, stealing the crown from Paris due to stronger Asian economies.
The Economist Intelligence Unit (EIU) calculated the cost of living in dozens of cities in its annual Worldwide Cost of Living Survey, which found that European metropolises like Paris and Zurich have become somewhat cheaper over the past year.
The French capital, which last year was ranked No.1, fell four places to No.5. Paris shares the spot with the Swiss capital Zurich, which was ranked fourth last year.
The survey compared 133 cities and looked at more than 400 individual prices of products and services, including food, drink, clothing, household goods and utilities.
Cost of living rising in North America
EIU found several other European cities also witnessed a cost-of-living drop. Out of 37 European cities surveyed, 31 — including Geneva and Copenhagen — dropped down the rankings.
Researchers put the fall to low inflation and softer economic demand across Europe. American cities New York and Los Angeles, meanwhile, climbed the rankings.
The survey found that the cost of living is on the rise in New York City and other cities in North AmericaImage: Getty Images/D. Angerer
"The survey shows some striking contrasts, with opposing trends in local currencies, inflation and domestic demand growth, seeing the comparative cost of living falling across Europe, while it rises in North America," said Nicholas Fitzroy, The EIU's Risk Briefing Director and editor of the survey.
"Similarly, the survey shows that there remains stark structural differences in the cost of living in Asia's most expensive business hubs, such as Hong Kong and Singapore, and its cheapest, such as Bangalore and Chennai."
Tel Aviv tops Middle East
The EIU survey showed Tel Aviv was the only Middle East country in the top ten, with no sign of wealthy playground Dubai or oil-rich Saudi cities in the highest rankings.
A partial recovery of the Turkish lira helped Istanbul make a huge leap, albeit still ranked 96th most expensive city.
At the other end of the scale, the Syrian capital Damascus was named the cheapest city in the world, as a result of the country's 10-year conflict, closely followed by Tashkent, Uzbekistan. The respective Argentinian and Venezuelan capitals, Buenos Aires, and Caracas were also placed in the bottom 5.
Asian cities are the world's most expensive for expats
If you are planning to relocate to Asia for work, get ready to open your wallet. Six of the top 10 costliest cities for expats are in Asia, according the annual cost of living ranking from the consulting firm Mercer.
Image: picture-alliance/blickwinkel
Beijing, China
Coming in as the ninth most expensive city is China's capital Beijing. Housing prices have been steadily increasing there over the past decade and international school fees are also expensive. The Mercer cost of living ranking is compiled to help multinational companies create compensation strategies for expat employees. The strengthening of the Chinese yuan pushed Chinese cities up on the list.
Image: Getty Images/F. Li
Shanghai, China
Shanghai is the most costly city on the Chinese mainland for expats and the seventh most expensive city overall. According to the website Expatistan, monthly rent for an 85 square-meter furnished apartment ranges from $2,170 to $1,200 (€1,800 - €1,030). Mercer said the rankings show "how currency fluctuation and shifts in the prices of goods and services" can affect expat purchasing power.
Image: picture-alliance/dpa/Yu Shenli
Seoul, South Korea
The capital of South Korea is the fifth most expensive city for expats. Foreigners and South Koreans alike can agree that coffee in Seoul is expensive. On average, a cup of coffee costs $10 (€8.60). The average price of a pair of blue jeans is almost $150 (€130). Mercer's survey measures the comparative cost of more than 200 items including meals, housing, transportation and clothing.
Image: Getty Images/AFP/E. Jones
Singapore
The Southeast Asian financial hub is the fourth most expensive city for expats and appears on many lists of the world's most expensive cities overall. You will pay more than $100 (€83) for jeans – double the price in New York. Gas is also expensive in the city-state, averaging over $2.00 (€1.70) per liter.
Image: picture-alliance/robertharding/G. Hellier
Tokyo, Japan
The Japanese capital with a population of over 9 million is the second most expensive city for expats. However, Mercer said that Japanese cities fell overall in ranking due to the weakening of Japanese yen against the US dollar. Still, rent for a furnished 85 square-meter apartment will range from $3,500 to $2,700 (€3,000- 2,300).
Image: Reuters/T. Hanai
Hong Kong
In 2018, Hong Kong was the most expensive city anywhere in the world for expats. According to Mercer, rent in this global business hub is at an all-time high, which is concerning for expats with families. Hong Kong also topped the list for gas prices and only Seoul has more expensive coffee. Non-Asian cities on the list included Bern and Zurich, Switzerland, N'Djamena, Chad and Luanda, Angola.
