The vibrant streets, stunning scenery, and rich culture may draw you to explore and consider living in a city. Nevertheless, all that enjoyment comes with a cost. Numerous global metropolises are renowned for their captivating nightlife, well-functioning public transit, and distinctive cultural offerings that entice cuisine enthusiasts, art enthusiasts, and thrill-seekers in equal measure.
Furthermore, there’s no doubt that popular locations like New York City, Tokyo, Japan, and London, England, have enough attractions to make them perfect holiday spots and the settings for Instagram posts that evoke yearning, but they are almost always highly priced.
Utility costs increased the least over the previous year among the ten categories in the EIU’s (Economist Intelligence Unit) pricing index, indicating the diminishing effects of Russia’s invasion of Ukraine in 2022. However, the cost of groceries is still rising significantly.
The EIU conducts research and analysis with an emphasis on national reports and economic projections. The study, which tracked costs for products and services in 172 places worldwide, was conducted between August 14th and September 11th, 2023.
Due to the region’s appreciation of the euro and other local currencies, as well as sticky inflation in the grocery, apparel, and personal care sectors, four of the ten most expensive cities in Western Europe have risen in the rankings.
Chinese cities have declined in the rankings, with four of them ranking among the greatest movers down due to the pandemic’s delayed economic recovery, weakening consumer demand, and currency devaluation.
The cost of living problem that has plagued several cities worldwide over the past two years has caused prices to skyrocket. The study for this year, which was performed from August 14 to September 11, 2023, revealed that prices for over 200 regularly used items and services had increased by an average of 7.4% year over year in local currency.
The top rank has been shared between Zurich, Switzerland, and Singapore, according to the Economist Intelligence Unit’s Worldwide Cost of Living report. Last year, New York City and Singapore shared the top spot. This year, NYC tied for third place with Geneva, Switzerland.
In this blog post, we count down the Top 5 Most Expensive Cities in the World in 2024. Read on to discover this year’s most expensive cities in the world.
Criteria for Ranking
The criteria involve various factors which The Worldwide Cost of Living survey by the Economist Intelligence Unit. The study, titled “A twice-yearly survey conducted by EIU,” examines more than 400 different pricing in those cities.
Between August 14 and September 11, 173 cities were included in the poll, which compared over 400 prices for more than 200 goods and services. With a 7.4% year-over-year increase in prices for over 200 products and services—a reduction from the previous year but still much greater than the forecast from 2017 to 2021—the survey demonstrates a tendency of cities suffering higher prices owing to inflation.
A certain number of typical business destinations—173 locations total in this year’s survey—are evaluated by the worldwide cost of living index. The cities on the list are selected based on several criteria, including population and size, public and economic significance.
To determine the cost of living in a certain place, one usually measures the prices of several products and services, such as food, trainers, and utilities, in addition to rent or a mortgage, and then compares those amounts to the prices of the same goods and services elsewhere.
Singapore
For the ninth time in the previous eleven years, Singapore maintained its title as the most expensive city in the world this year sharing it with Zurich, which rose from 2022’s sixth position, this year.
Singapore frequently comes in first. To begin with, land is quite rare due to the tiny area. Due to the restricted availability of property, the real estate market is extremely competitive as demand for it has grown.
The city ranks highest due in part to its stronger currency and high rate of inflation. Compared to condos and landed properties, HDB (Housing and Development Board) homes typically cost far less, around US $400,000 or US $380 per square foot. Smaller apartments with two or three rooms, meanwhile, start at US $225,000 and go up to $337,000.
Local transportation, including buses, has one-way fares ranging from S$1.25 to S$2.50. There is a taxi service and the first mile costs between S$3.50 and $4.80. More money is required for longer trips, rush hour, late-night surcharges, and luxury cars.
Zurich, Switzerland
It’s easy to understand why Zürich is among the most expensive cities in the world after taking just a quick look at it. Zurich is the most expensive city in the world due to the strong Swiss currency, as well as high costs for entertainment, groceries, and home products.
Situated at the northern tip of Lake Zürich, the financial capital offers luxurious shopping, lakeside promenades, and mouthwatering chocolate. The excellent quality of services and a high degree of security in Zurich affect the cost of living.
Geneva, Switzerland
Geneva, the global centre of international diplomacy, is renowned for its refinement, grace, and superior comfort. Geneva, known for the Jet d’Eau, the highest water fountain in the world, is a shopping paradise with an abundance of upscale cafes. But the cost of all that luxury is expensive.
Geneva is a prominent global financial hub that draws many banks, financial institutions, and multinational corporations. The high level of expenditure is determined by high pay and an abundance of professional choices.
Geneva has a high level of life that influences the cost of living since it has a wide range of higher education institutions, a first-rate healthcare system, and security.
New York
It feels like a city full of options to live in New York. Expensive city, with bright lights, and expensive rent. The average cost of rent has skyrocketed, with increases of 3.25% for one-year leases and 5% or more for two-year leases—the largest increases in over a decade.
The cost of real estate in this never-sleeping metropolis is among the highest worldwide. Furthermore, the expenses associated with services, entertainment, and transportation have a substantial impact on inhabitants’ daily budgets.
A studio-style room costs US $4,311, while an apartment with two bedrooms costs about US $3,295. While renting an apartment in the city, one must also consider utilities, broker fees, and security deposits in addition to the rental costs.
Compared to other regions of the nation, the cost of groceries is higher in the city. You must learn to utilize the public transportation system and give up your automobile when you move to New York City. With fare prices of US $2.75, the underground system is the most economical way to get to New York.
Hong Kong
With more than 7 million residents, the competitive demand for property and everything that Hong Kong has to offer—its many markets, vibrant nightlife, and attractions—make rent in the city expensive rather than the rent itself.
Hong Kong now stands fifth in 2024, according to EIU, nevertheless shared third place in the study of 2022 with Los Angeles. Because of the prospects for work and pleasure, it attracts thousands of expats as well as accomplished and rich business people.
Hong Kong boasts an extensive transit network, with fares varying according to the method of travel. Local transportation tickets range in price from US $1.20 to US $2.50 for one-way travel, and US $50 to US $76 for a monthly pass that allows unlimited trips.
In Hong Kong, housing is the largest expenditure. The land is scarce because the city is mostly made up of skyscrapers. In contrast, a supper at a budget restaurant runs between $5 and $12 per person. A three-course supper for two at a mid-range restaurant runs from $38 to $101.
Conclusion
According to this year’s report, the most costly cities are Singapore and Zurich. New York, which had shared first place with Singapore the previous year, dropped to third place while Zurich rose from sixth to jointly win the top spot with Singapore.
Financial journals and organizations frequently list the world’s most costly cities, accounting for factors such as real estate, healthcare costs, and cost of living.
Since China removed the COVID-19 limits in late 2022, supply chain problems have subsided, which has caused price rises to slow down. Living expenses have naturally increased the cost of living in many places; nevertheless, certain cities have been struck more severely than others.
Various research organizations calculate the cost of living using somewhat different formulas; some include areas that others do not, or they obtain their data from other sources. However, comparing lists reveals certain recognizable patterns.
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