The world’s most expensive cities for expats have been re-assessed with six of the top 10 located in Asia
Mercer, the world’s largest human resources consulting firm, has released its annual Cost of Living Survey, now in its 26th year.
With over 400 cities included, Mercer’s annual report is one of the most influential and comprehensive of its kind. The study helps multinational companies and governments design expatriate compensation packages for their employees and manage international assignment costs.
According to Mercer, Ashgabat in Turkmenistan is the most expensive cities for expats, with Hong Kong in second place.
Beirut in Lebanon is in third place, climbing an astonishing 42 places from last year as fallout from several years of political turmoil.
The world’s least expensive cities for international employees are Tbilisi in Georgia, Lusaka in Zambia and Bishkek in Kyrgyzstan.
“Cost of living has always been a factor for international mobility planning, but the pandemic has added a whole new layer of complexity, as well as long-term implications related to health and safety of employees, remote working and flexibility policies, among other considerations. As organizations rethink their talent and mobility strategies, accurate and transparent data is essential to compensate employees fairly for all types of assignments.”
Ilya Bonic, Career President & Head of Mercer Strategy
The latest analysis reveals that the global pandemic has widely affected consumer buying habits throughout the world’s expatriate communities.
Particular commodities such as “comfort food,” cleaning supplies and home entertainment have seen an increase in demand.
Comparing the cost of living
It is important to remember that the ranking is not designed for locals. It is designed for multinational companies looking to place expat employees and is used as a tool to calculate how much overseas workers should be paid.
It also provides an indication to potential expats looking to determine how expensive their new country could be to live in.
Mercer uses New York as its base city and the US dollar as the base currency. The results differ from other surveys such as the Economist’s Worldwide Cost of Living as Mercer focuses specifically on products bought by expats.
If you’re a hiring manager looking to send an analyst to Kuala Lumpur, you need to know how much it costs to live there so you are compensating that worker fairly. It’s easier to consult a ready-made list than to do your own research on the ground. Most companies who use these lists are placing highly-skilled professionals or managers who are likely to earn more than the average local salary.
Bryan Lufkin, BBC Capital
The survey analyses the price of goods and services in over 400 cities with substantial expat communities across the globe.
The index reflects the prices of over 200 items from the following categories:
- Housing
- Transportation
- Utilities
- Food
- Domestic supplies
- Home services
- Personal care
- Clothing and footwear
- Recreation and entertainment
- Alcohol and tobacco
The methodology assumes spending patterns among expats from different nationalities remain the same.
The weighting of goods and services are the same for all locations. The approach compares prices of comparable brands and retail outlets in both the home and host cities.
A drawback with this methodology is that certain factors can skew a city’s rating. For example, the high cost of car ownership and fuel in Singapore could propel it further up the rankings.
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Region by region
Six Asian cities, three European and one Middle Eastern city make up the 10 most expensive locations.
Most expensive Asian cities
- Ashgabat, Turkmenistan
- Hong Kong, Hong Kong (SAR)
- Tokyo, Japan
- Shanghai, China
- Singapore, Singapore
- Beijing, China
- Seoul, South Korea
- Shenzhen, China
- Guangzhou, China
- Taipei, Taiwan
MOST EXPENSIVE European CITIES
- Zurich, Switzerland
- Geneva, Switzerland
- Bern, Switzerland
- Copenhagen, Denmark
- London, UK
- Paris, France
- Milan, Italy
- Vienna, Austria
- Dublin, Ireland
- Amsterdam, Netherlands
MOST EXPENSIVe African CITIES
- N’Djamena, Chad
- Lagos, Nigeria
- Libreville, Gabon
- Abidjan, Cóte d’Ivoire
- Bangui, Central African Republic
- Brazzaville, Congo
- Kinshasa, DR Congo
- Yaounde, Cameroon
- Dakar, Senegal
- Douala, Cameroon
Most expensive cities in the Americas
North America
- New York, USA
- Los Angeles, USA
- San Francisco, USA
- Honolulu, USA
- Chicago, USA
World’s most expensive cities for expats ranking
Sort the table below by cost of living or country to view the world’s most expensive cities for expats.
2021 | 2020 | City | Change |
---|---|---|---|
1 | 2 | Ashgabat, Turkmenistan | 1 |
2 | 1 | Hong Kong, Hong Kong (SAR) | -1 |
3 | 45 | Beirut, Lebanon | 42 |
4 | 3 | Tokyo, Japan | -1 |
5 | 4 | Zurich, Switzerland | -1 |
6 | 7 | Shanghai, China | 1 |
7 | 5 | Singapore, Singapore | -2 |
8 | 9 | Geneva, Switzerland | 1 |
9 | 10 | Beijing, China | 1 |
10 | 8 | Bern, Switzerland | -2 |
11 | 11 | Seoul, South Korea | 0 |
12 | 13 | Shenzhen, China | 1 |
13 | 15 | N'Djamena, Chad | 2 |
14 | 6 | New York, USA | -8 |
15 | 12 | Tel Aviv, Israel | -3 |
16 | 25 | Copenhagen, Denmark | 9 |
17 | 20 | Guangzhou, China | 3 |
18 | 19 | London, UK | 1 |
19 | 18 | Lagos, Nigeria | -1 |
20 | 33 | Libreville, Gabon | 13 |
20 | 17 | Los Angeles, USA | -3 |
22 | 28 | Taipei, Taiwan | 6 |
23 | 22 | Osaka, Japan | -1 |
24 | 36 | Abidjan, Cóte d'Ivoire | 12 |
25 | 16 | San Francisco, USA | -9 |
26 | 38 | Tianjin, China | 12 |
27 | 34 | Nanjing, China | 7 |
28 | 40 | Chengdu, China | 12 |
29 | 31 | Riyadh, Saudi Arabia | 2 |
30 | 49 | Bangui, Central African Rep. | 19 |
31 | 66 | Sydney, Australia | 35 |
32 | 42 | Nouméa, New Caledonia | 10 |
33 | 50 | Paris, France | 17 |
34 | 43 | Qingdao, China | 9 |
34 | 26 | Nagoya, Japan | -8 |
36 | 47 | Milan, Italy | 11 |
37 | 54 | Vienna, Austria | 17 |
38 | 44 | Brazzaville, Congo | 6 |
39 | 46 | Dublin, Ireland | 7 |
40 | 26 | Dhaka, Bangladesh | -14 |
41 | 24 | Kinshasa, DR Congo | -17 |
42 | 23 | Dubai, UAE | -19 |
43 | 28 | Honolulu, USA | -15 |
44 | 64 | Amsterdam, Netherlands | 20 |
45 | 30 | Chicago, USA | -15 |
46 | 35 | Bangkok, Thailand | -11 |
47 | 65 | Rome, Italy | 18 |
48 | 37 | Miami, USA | -11 |
49 | 56 | Yaoundé, Cameroon | 7 |
50 | 41 | Boston, USA | -9 |
51 | 32 | Washington, USA | -19 |
52 | 72 | Munich, Germany | 20 |
53 | 78 | Brussels, Belgium | 25 |
54 | 76 | Frankfurt, Germany | 22 |
55 | 76 | Oslo, Norway | 21 |
56 | 74 | Helsinki, Finland | 18 |
56 | 39 | Abu Dhabi, UAE | -17 |
56 | 75 | Dakar, Senegal | 19 |
59 | 99 | Melbourne, Australia | 40 |
60 | 82 | Berlin, Germany | 22 |
61 | 63 | Shenyang, China | 2 |
62 | 21 | Moscow, Russia | -41 |
63 | 104 | Perth, Australia | Al |
63 | 83 | Luxembourg, Luxembourg | 20 |
65 | 48 | White Plains, USA | -17 |
66 | 70 | Douala, Cameroon | 4 |
67 | 87 | Madrid, Spain | 20 |
67 | 55 | Seattle, USA | -12 |
69 | 52 | Dallas, USA | -17 |
70 | 103 | Auckland, New Zealand | 33 |
71 | 52 | Manama, Bahrain | -19 |
72 | 133 | Stockholm, Sweden | 61 |
72 | 60 | Atlanta, USA | -12 |
74 | 100 | Dusseldorf, Germany | 26 |
75 | 62 | Morristown, USA | -13 |
75 | 51 | Houston, USA | -24 |
75 | 118 | Canberra, Australia | 43 |
78 | 60 | Mumbai, India | -18 |
78 | 80 | Manila, Philippines | 2 |
80 | 106 | Hamburg, Germany | 26 |
81 | 126 | Brisbane, Australia | 45 |
82 | 58 | Djibouti, Djibouti | -24 |
83 | 106 | Lisbon, Portugal | 23 |
84 | 102 | Barcelona, Spain | 18 |
85 | 68 | Abuja, Nigeria | -17 |
86 | 69 | Minneapolis, USA | -17 |
87 | 57 | Accra, Ghana | -30 |
88 | 126 | Adelaide, Australia | 38 |
89 | 66 | San Juan, Puerto Rico | -23 |
90 | 97 | Prague, Czech Rep. | 7 |
91 | 73 | Port of Spain, Trinidad & Tob. | -18 |
92 | 175 | Port-au-Prince, Haiti | 83 |
93 | 94 | Vancouver, Canada | 1 |
94 | 123 | Wellington, New Zealand | 29 |
94 | 71 | Amman, Jordan | -23 |
94 | 104 | Jeddah, Saudi Arabia | 10 |
97 | 113 | Riga, Latvia | 16 |
98 | 98 | Toronto, Canada | 0 |
99 | 116 | Niamey, Niger | 17 |
100 | 123 | Lyon, France | 23 |
101 | 80 | Detroit, USA | -21 |
102 | 130 | Stuttgart, Germany | 28 |
103 | 83 | St. Louis, USA | -20 |
104 | 83 | Yangon, Myanmar | -21 |
104 | 86 | Jakarta, Indonesia | -18 |
106 | 92 | Portland, USA | -14 |
107 | 134 | Pointe-a-Pitre, Guadeloupe | 27 |
108 | 134 | Santiago, Chile | 26 |
108 | 96 | Muscat, Oman | -12 |
110 | 91 | Pittsburgh, USA | -19 |
110 | 139 | Bratislava, Slovakia | 29 |
112 | 93 | Cleveland, USA | -19 |
113 | 140 | Cotonou, Benin | 27 |
114 | 121 | Casablanca, Morocco | 7 |
115 | 138 | Athens, Greece | 23 |
115 | 113 | Kuwait City, Kuwait | -2 |
117 | 101 | New Delhi, India | -16 |
117 | 90 | Panama City, Panama | -27 |
119 | 89 | Conakry, Guinea | -30 |
119 | 59 | St. Petersburg, Russia | -60 |
121 | 129 | Birmingham, UK | 8 |
122 | 118 | Bandar Seri Begawan, Brunei | -4 |
123 | 115 | Luanda, Angola | -8 |
124 | 78 | San Jose, Costa Rica | -46 |
125 | 109 | Phnom Penh, Cambodia | -16 |
126 | 142 | Bamako, Mali | 16 |
126 | 148 | Ljubljana, Slovenia | 22 |
128 | 134 | Aberdeen, UK | 6 |
129 | 137 | Montreal, Canada | 8 |
130 | 109 | Doha, Qatar | -21 |
131 | 141 | Glasgow, UK | 10 |
132 | 88 | Montevideo, Uruguay | -44 |
132 | 146 | Tallinn, Estonia | 14 |
134 | 155 | Nuremberg, Germany | 21 |
134 | 123 | Havana, Cuba | -11 |
136 | 154 | Lome, Togo | 18 |
137 | 126 | Cairo, Egypt | -11 |
138 | 158 | Leipzig, Germany | 20 |
139 | 116 | Hanoi, Vietnam | -23 |
140 | 152 | Zagreb, Croatia | 12 |
141 | 122 | Guatemala City, Guatemala | -19 |
141 | 165 | Harare, Zimbabwe | 24 |
143 | 111 | Ho Chi Minh City, Vietnam | -32 |
143 | 157 | Vilnius, Lithuania | 14 |
145 | 162 | Ouagadougou, Burkina Faso | 17 |
145 | 95 | Nairobi, Kenya | -50 |
145 | 146 | Calgary, Canada | 1 |
148 | 149 | Belfast, UK | 1 |
149 | 106 | Kiev, Ukraine | -43 |
150 | 112 | Lima, Peru | -38 |
151 | 132 | Winston Salem, USA | -19 |
152 | 120 | Mexico City, Mexico | -32 |
152 | 163 | Tirana, Albania | 11 |
152 | 144 | Kuala Lumpur, Malaysia | -8 |
152 | 159 | Rabat, Morocco | 7 |
156 | 151 | Ottawa, Canada | 5 |
156 | 166 | Limassol, Cyprus | 10 |
158 | 143 | Chennai, India | -15 |
159 | 14 | Victoria, Seychelles | -145 |
160 | 174 | Bucharest, Romania | 14 |
161 | 145 | Quito, Ecuador | -16 |
162 | 170 | Budapest, Hungary | 8 |
163 | 183 | Belgrade, Serbia | 20 |
164 | 169 | Warsaw, Poland | 5 |
165 | 150 | Kingston, Jamaica | -15 |
165 | 180 | Sofia, Bulgaria | 15 |
167 | 163 | Dar Es Salaam, Tanzania | -4 |
168 | 153 | Buenos Aires, Argentina | -15 |
169 | 168 | San Salvador, El Salvador | -1 |
170 | 171 | Bengaluru, India | 1 |
171 | 177 | Kampala, Uganda | 6 |
172 | 172 | Baku, Azerbaijan | 0 |
173 | 156 | Istanbul, Turkey | -17 |
173 | 167 | Santo Domingo, Dominican Rep. | -6 |
175 | 176 | Kigali, Rwanda | 1 |
176 | 184 | Nouakchott, Mauritania | 8 |
177 | 130 | Sao Paulo, Brazil | -47 |
178 | 187 | Cape Town, South Africa | 9 |
179 | 161 | Maputo, Mozambique | -18 |
180 | 181 | Bogota, Colombia | 1 |
181 | 185 | Kolkata, India | 4 |
182 | 173 | Port Louis, Mauritius | -9 |
183 | 177 | Monterrey, Mexico | -6 |
184 | 192 | Johannesburg, South Africa | 8 |
185 | 177 | Colombo, Sri Lanka | -8 |
186 | 197 | Sarajevo, Bosnia-Herz. | 11 |
187 | 188 | Asuncion, Paraguay | 1 |
188 | 196 | Tegucigalpa, Honduras | 8 |
189 | 193 | La Paz, Bolivia | 4 |
190 | 185 | Blantyre, Malawi | 5 |
191 | 160 | Rio de Janeiro, Brazil | -31 |
192 | 202 | Skopje, North Macedonia | 10 |
193 | 189 | Almaty, Kazakhstan | -4 |
194 | 182 | Addis Ababa, Ethiopia | -12 |
195 | 191 | Yerevan, Armenia | -4 |
196 | 198 | Managua, Nicaragua | 2 |
197 | 194 | Minsk, Belarus | -3 |
198 | 194 | Algiers, Algeria | -4 |
199 | 200 | Islamabad, Pakistan | 1 |
200 | 204 | Banjul, Gambia | 4 |
201 | 205 | Karachi, Pakistan | 4 |
202 | 199 | Gaborone, Botswana | -3 |
203 | 206 | Tashkent, Uzbekistan | 3 |
204 | 208 | Windhoek, Namibia | 4 |
205 | 190 | Brasilia, Brazil | -15 |
206 | 209 | Tunis, Tunisia | 3 |
207 | 203 | Tbilisi, Georgia | -4 |
208 | 201 | Lusaka, Zambia | -7 |
209 | 206 | Bishkek, Kyrgyzstan | -3 |
You can download Mercer’s complete Cost of Living Survey here.