Hong Kong and Singapore came in first and second place as the most expensive cities for expatriates in 2024 according to Mercer’s cost of living report.
This represents the second year in a row that these regional financial centers have outperformed Swiss cities such as Zurich, Geneva, Basel and Bern.
High rental costs pushed Hong Kong and Singapore to the top of the list, and major centers such as Zurich to third place, followed by Geneva, Basel and Bern in fourth, fifth and sixth places, respectively.
New York fell one place to seventh place, while London rose 9 places to eighth place, according to Bloomberg.
The Mercer report highlights that rising housing costs and volatile inflation trends are putting significant pressure on workers’ compensation packages and expatriate employees.
“Cost of living challenges have had a significant impact on multinational organizations and their employees,” Yvonne Traber, global mobility leader at Mercer, told Bloomberg.
Traber added, “High costs of living may cause taxpayers to modify their lifestyle, reduce discretionary spending, or even struggle to meet their basic needs. To address these challenges, employers can offer compensation packages that include housing allowances, subsidies, or provide other support services.”
Facts provided by the report
In the Middle East, Dubai emerged as the most expensive city for expatriates, ranking 15th in the world, up 3 places from last year.
Tel Aviv comes directly in 16th place, despite falling 8 places in the rankings, and Djibouti comes in 18th place.
Other notable cities in the region include Abu Dhabi at 43rd, Riyadh at 90th, and Jeddah at 97th.
The index saw Cairo rise from 217th place last year to 168th place this year as a result of the high inflation rates the country is witnessing.
As for Istanbul, Turkey, it also rose from 185th place last year to 130th among the most expensive global cities for expatriates.
The rise in rankings of Middle Eastern cities is primarily due to increased housing costs and overall living expenses, making it an important consideration for expatriates and multinational companies operating in the region.
- The report included 7 US cities in the list of the 20 most expensive cities: 7 US cities appeared on the list, including Los Angeles (10), Honolulu (12), and San Francisco (13).
- The Pacific region: Sydney emerged as the most expensive city in the Pacific region, ranking 58th globally.
- Canada and India: Toronto was the most expensive city in Canada, ranked 92nd, while Mumbai was the most expensive destination in India, ranked 136th.
- Nigerian cities at the bottom: Nigeria’s Lagos (225) and Abuja (226) fell to the bottom of the table due to currency fluctuations.
Ranking of the 30 most expensive cities for expatriates
1- Hong Kong, China.
2- Singapore.
3- Zurich, Switzerland.
4- Geneva, Switzerland.
5- Basel, Switzerland.
6- Bern, Switzerland.
7- New York, United States.
8- London, United Kingdom.
9- Nassau, Bahamas.
10- Los Angeles, United States.
11- Copenhagen, Denmark.
12- Honolulu, United States.
13- San Francisco, United States.
14- Bangui, Central African Republic.
15- Dubai, United Arab Emirates.
16- Tel Aviv, Israel.
17- Miami, United States.
18- Djibouti, Djibouti.
19- Boston, United States.
20- Chicago, United States.
21- N’Djamena, Chad.
22- Washington, DC, United States.
23- Shanghai, China.
24- Vienna, Austria.
25- Beijing, China.
26- Conakry, Guinea.
27- Atlanta, United States.
28- Seattle, United States.
29- Paris, France.
30- Amsterdam, Netherlands.
Mercer’s ranking was derived from comparing the costs of more than 200 items and services, including housing, transportation, food, clothing and household goods, in 226 cities.
The results confirm the financial challenges that expatriates face in maintaining their standards of living amid economic fluctuations and high costs of living.
As Yvonne Traber emphasized, companies may need to adapt their compensation strategies to help expatriates manage these challenges effectively.
