If you’ve ever wondered what the world’s cheapest and most expensive cities in the world are, then you’re in luck. Twice a year, the Economist Intelligence Unit reveals a report tracking the cheapest and priciest locations on the planet.
Comparing these reports over time helps illustrate global economic changes, and the latest report paints a picture of a world struggling with an uncertain economy and a global cost of living crisis.
Most expensive cities
The big finding comes at the top. A strong dollar has propelled New York to the top of the list. It is tied with Singapore for first place, whilst Tel Aviv and Hong Kong sit close behind in third and fourth. LA comes in at five, followed by two Swiss cities, Zurich and Geneva, in sixth and seventh respectively.
San Francisco, Paris, Copenhagen, and Sydney round off the top ten. Notable absentees include London, and there are no Canadian cities despite recent price rises in Toronto and Vancouver.
House prices have risen by an average of 8.1% across major cities, suggesting the much-anticipated housing market crash is yet to fully materialise.
Russia’s war against Ukraine is making its presence felt. Fuel prices rose by an average of 22% around the world. Inflation is high across the board, but Venezuela is the hardest hit of all with an eye-watering inflation rate of 132% since last year.
However, the Economist’s experts predict price rises will slow down over the next year, barring a further escalation of the war in Ukraine, although it should be noted that with the West supplying more weapons and Russia talking up the chances of World War III, escalation can’t exactly be discounted.
The world’s cheapest cities
At the other end of the scale, Damascus in Syria was perhaps unsurprisingly cheapest, followed by Tripoli in Libya, and Tehran in Iran. Colombo, Bangalore, and Algiers, were all tied for tenth cheapest.
Kyiv in Ukraine was not included in this year’s report due to the ongoing war against Russia.
The report was compiled by analysing over 50,000 price points across all the major cities, incorporating metrics such as food, drink, fuel, clothing, household supplies, rent, utility bills, private schools, and personal care items.
All cities are compared to an index linked to a base city—in this case, New York, which tops the list with a score of 100. That compares with Damascus, at the other end of the scale, with just 11.
Finding out what the most expensive cities in the world are provides a vivid illustration of the most and least desirable places to live. At the top are the world’s economic powerhouses such as New York and Singapore, while the bottom is dominated by countries that have recently struggled with political and economic instability. However, across the board, they show a world in which it is becoming more difficult to make ends meet. How that will change depends on developments in Ukraine and beyond.
Contact us today to discuss property investment opportunities.
