Where living is the most expensive

In a global comparison, the cost of living is highest in Swiss cities. In the Numbeo database's cost of living index, five Swiss cities are among the top ten.

The most expensive place to live is Zurich (second place in the overall ranking), followed by Basel (third place) and Lausanne (fourth place). Geneva and Bern are ranked sixth and eighth respectively. According to the ranking, the most expensive city is Hamilton in Bermuda.

Overall, the cost of living ranking shows that there are major differences between countries. Anyone deciding to relocate or spend a longer period of time in a particular country should therefore also consider the costs of everyday life beforehand.

Cities with the highest cost of living

The study takes into account factors such as the price of rent, food, transport, medical care and other expenses. It also includes the average cost of a restaurant visit.

According to the results, Switzerland is the most expensive country, followed by Iceland, Norway, Bermuda and Denmark. These countries are known for their high quality of life, but this is also reflected in higher costs.

The cost of living is most favourable in cities in the global South.

On the other hand, countries such as India, Pakistan, Egypt, Bangladesh and Algeria are the cheapest. The cost of living there is significantly lower than in the more expensive countries.

Looking at the top 25, it is noticeable that cities in the USA are particularly expensive - especially cities in California. The most expensive US city is San Jose (fifth place), followed by San Francisco (seventh place). The US capital Washington is in ninth place, making it even more expensive than New York (tenth place).

Despite the solid foundation, it should be noted that the cost of living results are general in nature and individual experiences may vary. Factors such as personal lifestyle, income and location within the country play a role in the individual cost of living.

New York is the most expensive city for expatriates

The management consultancy ECA International came to similar conclusions regarding the most expensive cities worldwide. The study focusses in particular on the cost of living for expatriates.

According to ECA International's latest cost of living report, London remains the fourth most expensive city in the world for expatriates, while New York overtakes Hong Kong to take first place.

What is new is that some UK cities have dropped out of the top 100 most expensive cities, including Birmingham (115), Cardiff (118) and Belfast (123), with Birmingham dropping 16 places to just one place ahead of St Petersburg in Russia.

"The cost of living crisis in the UK continues, with food, utilities and house prices being the main drivers of rising costs."

Steven Kilfedder, Head of Production at ECA International, says: "The cost of living crisis in the UK continues, with rising costs driven primarily by food, utilities and house prices. Despite these challenges, all UK cities except London have seen a deterioration in their global rankings. This is largely due to the weakness of the pound, which has made the country cheaper for people coming to the UK from other countries."

These are the ten most expensive cities in the world for expats

ECA International has been analysing the cost of living worldwide for 50 years. It conducts two major surveys each year to help companies assess the cost of living around the world as part of salary calculations for cross-border relocations. The surveys compare a basket of comparable consumer goods and services commonly purchased by employees in over 500 locations worldwide, such as coffee, sugar and eggs. ECA data on accommodation is also taken into account by comparing rental costs in typical expatriate neighbourhoods in over 430 locations worldwide.

Inflation drives up the cost of living in European cities

More than half (54 per cent) of European cities have risen in the cost of living rankings, driven by high inflation rates. The top five is dominated by Switzerland, with Geneva maintaining its position as the most expensive city for expatriates, followed by London, Zurich, Bern and Copenhagen. Zurich, considered the economic centre of Switzerland, has moved up one place and is now the sixth most expensive city in the world.

In Norway, on the other hand, Oslo and Stavanger have fallen nine and 14 places respectively and are now ranked 28th and 40th, while in Sweden Stockholm and Gothenburg have dropped ten and nine places respectively and are now ranked 46th and 86th in the world.

Within the eurozone, almost two thirds of cities (61 per cent) have improved their ranking, including Dublin, which has moved up six places to 38th due to high inflation. France is an exception. All French cities analysed have a slightly lower inflation rate than many other cities that have introduced the euro.

"Even if prices rise quickly, as is the case in many parts of Europe, a city can become comparatively cheaper for visitors if the currency is weaker."

"These developments across Europe illustrate the dynamics that influence the cost of living in the different regions," continues Kilfedder. "Our cost of living rankings are influenced by two factors: prices and exchange rates. Even if prices are rising rapidly, as is the case in much of Europe, a city can become comparatively cheaper for visitors if the currency is weaker. This is the case with Norwegian and Swedish cities, where inflation rates have peaked at around ten per cent, but their rankings have fallen by an average of ten places due to the weakening of their respective currencies," he explains.

War in Ukraine affects cost of living worldwide

The ongoing Russian invasion of Ukraine continues to push up the cost of living in the warring countries themselves, in the entire region and worldwide. Despite the sanctions imposed by the West, the Russian rouble has recovered over the past year, which has led to Moscow moving up 37 places to 25th place in the ranking of the world's most expensive cities.

Housing costs in the cities to which many Ukrainian refugees have fled the war have soared, making these cities more expensive for everyone, including expats. Polish cities have been hardest hit, with rents rising by 25 to 50 per cent, pushing Krakow down 23 places to 178th and Warsaw down 11 places to 158th in the world rankings.

The same scenario has occurred for Russians who have fled to cities such as Dubai, Yerevan, Nicosia and Tbilisi to escape possible mobilisation as a result of the war. In Dubai (United Arab Emirates), rents rose by almost a third (30 per cent), catapulting the city to 12th place in the world rankings. In Tbilisi (Georgia), rents rose by more than a fifth as supply was unable to meet the increased demand from Russian expatriates. The Georgian city moved up 65 places to 102nd place, which can be attributed to the appreciation of the national currency, which also contributed to the city becoming more expensive for visitors.