Hong Kong maintained its position as the world’s most expensive city for expatriates in 2024, according to Mercer.
Chun-Yip Wong | E+ | Getty Images
Asia’s major financial hub once again took the top spot as the most expensive city to live in for foreign workers, according to Mercer.
According to the 2024 Cost of Living Cities Rankings, Hong Kong was ranked as the most expensive city to live in for expats, followed by Singapore and Zurich.
The Swiss cities of Zurich, Geneva, Basel and Bern ranked four out of 10. New York City came in seventh.
The top five remained unchanged from last year, but London rose nine places, from 17th to 8th.
Top 10 most expensive cities for foreigners:
The study compared the costs of more than 200 items in each of the 226 cities surveyed, including the prices of housing, transportation, food, clothing, household goods and entertainment.
New York City was used as the benchmark and currency fluctuations were measured against the US dollar.
Cities in Nigeria, Pakistan and Kyrgyzstan were ranked the cheapest for expats, with Nigeria’s Lagos and Abuja dropping 178 and 86 places to 225th and 226th respectively.
Soaring housing market
High inflation and rising economic and geopolitical tensions are driving up house prices, utility bills, council taxes and education costs, according to the Mercer report.
“The rising cost of living can cause assignees to change their lifestyles, cut back on discretionary spending, or even struggle to meet their basic needs,” Yvonne Traver, Mercer’s global mobility leader, highlighted in a press release.
All of the top 10 cities except Nassau, Bahamas, are reporting rising housing costs from 2023, with prices expected to rise by 8% in Hong Kong and Singapore, 7% in New York City and 6% in Zurich.
“There will be significant variation in these costs around the world from 2023 to 2024, with residential rental prices differing widely across cities,” the report said.
Housing supply could not keep up with demand, and prices rose.
“These costs may be particularly problematic in areas with high population growth or limited developable land. Other factors, such as construction costs and land prices, may also affect housing affordability,” the report said, adding that this would leave workers with less disposable income to spend on other expenses.
do not miss it:
Plus, sign up for the CNBC Make It newsletter to get tips and tricks to succeed in work, money and life.
