The website Mercer disclosed their list of the world’s most expensive cities for ex-pats (in 2021). According to their cost of living survey, Ashgabat in Turkmenistan tops the list. Also, 209 out of 400 countries made it to their list.
According to Mercer's analysis, this is the official top 10 world’s most expensive cities for ex-pats.
Top ten most expensive cities for ex-pats
If you are an ex-pat or want to move abroad, you might want to find out the world’s most expensive cities. To determine the cost of living, Mercer evaluated Over 200 goods prices. From household items to food, transportation, utilities, the index reveals the cost of living based on their pricing analysis compared to New York City. Let’s move to the top ten most expensive cities to live and work in 2021!
Ashgabat, Turkmenistan
Why is Ashgabat one of the world’s most expensive cities?
It is because of the economic crunch in Turkmenistan. Prices of food, housing, and health care are sky-high. Additionally, the pandemic worsened the situation, resulting in a food shortage and a higher cost of living index.
The flashy city is equally expensive for locals and ex-pats. The marble buildings, museums, and the glitzy front conceal the country's economic condition. And the foreigners wanting to live and work there have to go with the pretense to do business in Ashgabat. It is a hub of gas reserves, which attracts ex-pats to do business there.
Turkmenistan relies on its gas reserves to make money. Low gas prices and the pandemic are the causes of the declining economy of Ashgabat. It is also the reason for its highest cost of living status in the world.
Hong Kong
The main reason for Hong Kong’s high cost of living is the shooting prices of real estate. The previous year, Hong Kong topped the list because of the political unrest and bad economic conditions.
The obnoxious real estate prices make it difficult for the locals and ex-pats to get a rental place, let alone own a property. Over 7 million residents are struggling to acquire land in a total of 1,108 sq km area. The lack of land supply and high demand for properties has increased the land cost marginally. The average rent in Hong Kong city is higher than that of apartments in London. The inflation on properties and local goods increased the cost of living. Hence, it is consecutively ranked among the world’s most expensive cities for ex-pats and locals.
The situation is so bad that some people live in subdivided buildings with 30 sq ft rooms, called “coffin homes.” Why is the situation so bad? That is a debate for another day.
Beirut, Lebanon
Beirut’s ranking in Mercer’s list from 45 to 3rd came as a surprise for everyone. What happened to cause such high inflation and change in the cost of living index?
The crisis in Beirut, especially the bombing at the Port of Beirut last year and Covid-19, worsened matters. The value of the Lira went down nine times against the USD. The economic downfall of Lebanon raised the cost of living. Consequently, the financial crisis grew worse after the explosion at the port, which made it difficult for ex-pats to reside in Beirut, one of the world’s most expensive cities!
Tokyo, Japan
Tokyo is among the most expensive cities in Asia and worldwide. The cost of living is high, and so is the quality of life. Japan is the most developed country in Asia. Political and economic stability offers a high standard of living. And it comes with a high cost of living as the transportation, housing, food, and prices of goods are the highest worldwide.
Still, Tokyo’s rank dropped a little from the previous year. According to Mercer, it came down from number 3rd to 4th most expensive cities in the world. Japan is as advanced as any other western country, and an ex-pat can easily get around if he utilizes his budget smartly. The culture, welcoming locals, modern lifestyle, and historical sites like Mount Fuji attract foreigners to experience life in Tokyo.
Zurich, Switzerland
There are three cities from Switzerland among Mercer’s top ten most expensive cities for ex-pats. It is evident from the survey that Switzerland is the world’s most expensive country.
Compared to New York City, the cost of living in Zurich is 36% higher. The high-quality life, political stability, and economic prosperity ensure that people living in Zurich enjoy a high standard of living. The breathtaking landscapes and strong economic conditions attract ex-pats to live and work there. The cost of living in Zurich is high, so are the wages. The appeal of high incomes and standard of living bring ex-pats to Switzerland more than any other European country does.
Shanghai, China
The abundance of wealthy citizens in Shanghai ranked it among Mercer’s most expensive cities for ex-pats listing. As the world’s 6th expensive city, it is another popular destination for foreigners. The wealthy citizens of Shanghai spend a luxurious and most comfortable life. The dine-ins, law practices, and such exclusive services have the highest price globally. Consequently, the cost of living is raised seeing the lavish standard of living.
How extravagantly will you live in Shanghai as a foreigner? It depends on your pocket and how smartly you use your finances.
Singapore
Singapore is a business-centric country. The clean and modern atmosphere, along with great business opportunities, pull expatriates to Singapore. It might not be as expensive for locals, but for ex-pats, it might fall on the pricey end of the spectrum. According to Mercer, some factors made Singapore the world's 7th most expensive city for ex-pats.
Scarcity of Land, import of natural resources and food, expensive housing, expensive education and cars, pricey health care, and high-quality lifestyle contribute to its rank amongst the world’s most expensive cities.
Geneva, Switzerland
It is not so surprising to see Geneva on this list. It is a city in Switzerland, so it is bound to be one of the most expensive cities. More so for the ex-pats. The high salaries have increased the cost of living in Switzerland. The more they get paid, the more they spend to live comfortably in Switzerland. From housing, food, education, transportation, to insurance, the living standard is high, and so are the prices.
Geneva is a hub for financial institutions. Most of the United nations’ head offices are based there. The international organizations have set their agencies in Geneva for a reason. The political solidity, low tax rates, and the infrastructure of Switzerland attract the ex-pats to settle down in Geneva.
Beijing, China
Some cities of China are expensive to live in, like Shanghai and Beijing. Mostly, the rent system in China is such that you need to pay a month’s rent before moving in. The high rental properties raise the cost of living slightly. China is a developed country with a strong economy.
To live and work in China you should look for high-paying jobs. Good thing is that most foreigners live in rental apartments because an ex-pat cannot own land in China. Not until he has been staying there for more than 12 months. Better yet, live in a city which is less expensive.
Beijing is not as metropolitan as Shanghai. Also, it is less expensive in comparison to Shanghai. So, if you want to move to China on a tight budget, you should go to Beijing. Beijing residents get high salaries, and they have to pay high rents. According to Mercer’s cost of living analysis, it is the ninth most expensive city in the world for ex-pats.
Bern, Switzerland
Because Bern is the capital of Switzerland, you can expect its cost of living to be high. Bern is the tenth most expensive city for ex-pats in the world. Not only ex-pats but for locals as well. It offers superior wages and a high standard of living; it levies low taxes on its people. Regardless, the food, accommodation, and insurance are higher than any other European country.
A two-bedroom apartment’s rent per month is around $2,568, excluding utilities. The rents are high, and if you survive on takeaways, expect the expenses to climb higher. Despite the higher cost of living, foreigners flock to this city, seeing that around 20% of the population in Bern is made up of foreigners.
Final Thoughts
The purpose of the analysis is to help multinational companies determine the wages of ex-pat employees. Moreover, it will help businesses and government authorities manage ex-pat assignment expenses.
Some Asian cities are expensive because they are business-centric, like Singapore, Japan, and Hong Kong. They are doing well economically and have a high cost of living index. Contrarily, cities like Ashgabat and Beirut top the list because of a declining economy and political instability. Before you move to another country, always find out if you can afford to live there or not. With Mercer's most expensive cities for ex-pats list, you can decide which city should be your next stop!
Also check out: Top 10: tax rates of countries – Highest to lowest!
And also: Top 10: the cheapest countries to LIVE IN, in 2022! (low cost of living)