Moving to a different city or country for work and opportunities is essential but can be daunting. A major factor influencing such decisions is undeniably the cost of living in the new location. However, varying economic conditions make some cities more expensive for expatriates. India’s financial capital, Mumbai, has emerged as the most expensive city in the country for expatriates in terms of cost of living.
In a survey published by Mercer, Mumbai has risen 11 spots to rank 136th globally as the most expensive city for expatriates. Delhi also made it into the top 200, climbing to 164th place. Chennai’s ranking fell by five positions to 189th. Similarly, Bengaluru declined by six spots to 195th. Hyderabad’s position remained unchanged at 202.
On the other hand, Pune has moved up eight places to reach 205th, while Kolkata has also advanced, gaining four spots to secure the 207th position.
Meanwhile, Hong Kong has once again claimed the top spot as the most expensive city for expatriates, according to Mercer’s ‘2024 Cost of Living’ report. The Asian city, which also topped the annual list in 2022 and 2023, was closely followed by Singapore, in second place. Following closely behind are Zurich, Geneva, and Basel, all located in Switzerland.
The survey, which evaluates the cost of living in 227 cities across the globe, takes into account factors such as housing, transportation, food, clothing, household goods, and entertainment. Factors that contributed to high living costs in 2024 include expensive housing markets, high transportation costs, higher cost of goods and services, inflation, exchange rate fluctuations, utilities, local taxes and education.
“High living costs may cause assignees to adjust their lifestyle, cut back on discretionary spending or even struggle to meet their basic needs. To offset these challenges, employers can offer compensation packages that include housing allowances or subsidies or provide other support services. They can also explore alternative talent sourcing strategies.” said Yvonne Traber, Mercer’s Global Mobility Leader.