According to the magazine’s ranking, Zurich, Switzerland, and the city-state of Singapore are leading as the most expensive destinations to settle in today.
These data are extracted from the latest Global Cost of Living Index by the Economist Intelligence Unit, a renowned research center linked to one of the world’s most respected economics and business magazines.
This index is a comprehensive assessment that measures and compares the cost of living in various cities around the world. Developed by the EIU, a division of The Economist magazine, this index takes into account a variety of economic factors, such as food prices, housing, transportation, utilities, and entertainment.
The index’s methodology generally involves collecting price data for a wide range of products and services in each surveyed city. These data are then weighted based on their relevance to the average cost of living for a typical resident. The result is a ranking that allows comparison of the relative cost of living in different parts of the world.
The Economist Intelligence Unit’s Global Cost of Living Index is a valuable tool for businesses, expatriates, students, and researchers who wish to understand and plan for the costs associated with living in various global cities.
A city’s cost of living, as initially reported in November 2023, is often influenced by the local socio-political and economic situation. Currency fluctuations, fiscal policies, the economic context, and even armed conflicts in the region can play a significant role in this equation.
Below, we present the top 10 most expensive cities to live in:
Zurich, the Swiss metropolis, is characterized by its high cost of living, primarily attributed to the appreciation of the Swiss franc against the dollar, with a 10% increase in the past year, according to The Economist. Additionally, the high costs of food, household goods (such as cleaning products), and leisure activities contribute to its prominent position.
The city-state of Singapore has maintained its position at the top of the ranking as one of the most expensive cities to live in for a decade, sometimes sharing the spot with other cities, sometimes not. The high costs of transportation and clothing are among the main reasons for this classification, significantly surpassing the global average.
Geneva shares its prominent position with New York, and in addition to the strength of the local currency, high taxes are cited as a significant factor for the high cost of living in the Swiss city, an issue that also affects Zurich, the top-ranked city.
New York has been in the top 10 since the start of the pandemic and led the ranking in 2022, alongside Singapore. Despite a slight decline, the economic crisis resulting from COVID-19 and high inflation in the U.S. still contribute to the high cost of living in the country.
The real estate market plays a crucial role in this aspect, with competition for space, gentrification, and a large number of properties converted into short-term rentals reducing the availability of residences for rent or purchase and driving up prices.
In fifth place, we have Hong Kong, China. The geography of this location is one of the main reasons contributing to its high cost of living. With its territory spread over more than 260 mountainous islands, space for building properties is extremely limited. This results in exorbitant housing prices, especially due to the high costs of construction materials.
In sixth place is Los Angeles, USA. Like New York, inflation in the United States and dollar fluctuations in the international market are significant factors behind the high cost of living in Los Angeles.
Paris, France, occupies the seventh position. This year has been relatively favorable for the City of Light, as despite the increase in prices in the French capital, the weakening of the euro helped keep Paris at the end of the list of the world’s most expensive cities.
Tel Aviv, Israel, and Copenhagen, Denmark, are tied for the eighth position. “The Economist” highlights that the study data were collected before the conflict between Israel and Hamas, therefore, they do not fully reflect the current situation in the Israeli capital.
In 2022, Tel Aviv ranked third among the world’s most expensive cities, but in the following months, it became comparatively more affordable. However, the magazine acknowledges that the conflict affected the exchange rate in the country, making it more difficult to acquire some products in local markets, which consequently affects prices. Thus, by the end of 2024, it is possible that Tel Aviv will rise in the ranking.
Copenhagen, on the other hand, faces high taxes, with a rate of about 25% applied to all goods and services. This makes the Danish capital quite an expensive destination for foreign visitors. Additionally, certain products, such as chocolate, tobacco, and alcohol, are even more affected by additional taxes.
In the tenth position, we have San Francisco, USA. Among the weaknesses of this third U.S. representative on the list are consumer goods and real estate, with housing being notably expensive, even by American standards. However, a year earlier, San Francisco ranked eighth, showing a relative improvement in the situation. This is partly due to the difficult recovery from the economic crisis caused by COVID-19 faced by its residents.
As for South American cities, the study reveals that major cities in the region are, on average, becoming progressively more expensive to live in due to various countries’ efforts to curb inflation. However, Buenos Aires, the capital and largest city of Argentina, stands out as one of the 10 cheapest cities in the world to live in, famous for its eclectic architecture that reflects its colonial history, European influences, and modernity, with its neoclassical mansions and cobbled streets, old colonial houses, and famous antique fairs.
Finally, the most affordable city to live in currently, according to “The Economist” ranking, is Damascus, the capital of Syria and one of the oldest continuously inhabited cities in the world. Damascus is famous for its historical landmarks, including the Old City, surrounded by ancient walls, which houses many sites of historical significance that is a UNESCO World Heritage Site.
Besides its historical value, Damascus is an important cultural and economic center in Syria. The city is known for its production of traditional crafts, such as textiles, carpets, and ceramics, which are sold in its colorful souks. Damascus cuisine is also renowned, offering a variety of delicious dishes from Syrian cuisine, including the famous Syrian bread and dishes of meat, grains, and fresh vegetables.
