Costliest Cities in the World: Mercer Report 2024

Historical Context: The Mercer Cost of Living City Ranking is an annual report that has been a significant resource for multinational companies and governments since its inception in the early 1990s. It provides insights into the cost of living for expatriates in various cities worldwide, helping organizations manage compensation packages for their international employees. The report’s historical data has been crucial in understanding economic trends, inflation, and the impact of geopolitical events on living costs.

Current Findings: According to Mercer’s Cost of Living City Rankings for 2024, Hong Kong, Singapore, and Zurich are the most expensive cities for expatriates. These cities have consistently held their positions from the previous year. On the other end of the spectrum, Islamabad, Lagos, and Abuja are the least expensive cities.

India’s Standings:

• Mumbai: Ranked 136th globally, up 11 spots from last year, making it the costliest city in India for expatriates.
• Delhi: Ranked 165th, up four places.
• Chennai: Dropped five places to 189th.
• Bengaluru: Dropped six places to 195th.
• Hyderabad: Maintained its position at 202nd.
• Pune: Moved up eight spots to 205th.
• Kolkata: Moved up four spots to 207th.

Global Insights: Mercer’s 2024 list analyzed 226 cities worldwide, assessing the costs of over 200 items, including housing, transport, food, clothing, and entertainment. New York City was used as the base city, with costs measured in dollars for consistency.

Factors Influencing Costs:

• Inflation and Exchange Rates: These have significantly impacted salaries and savings for internationally mobile employees.
• Economic and Geopolitical Volatility: Increased conflicts and economic instability have led to higher expenses in housing, taxes, education, and utilities.
• Regional Highlights:
  • Europe: London (8th), Copenhagen (11th), Vienna (24th), Paris (29th), and Amsterdam (30th).
  • Middle East: Dubai is the costliest at 15th.
  • South America: Uruguay ranks 42nd.
  • North America: New York City ranks 7th.
  • Africa: Bangui is the most expensive at 14th.
  • Pacific Region: Sydney tops the list.

Impact on People and Businesses: High living costs have forced people to adjust their lifestyles, cut discretionary spending, and in some cases, struggle to meet basic needs. Businesses face challenges in retaining top talent due to high salaries, benefits, and limited mobility options.

Summary in Bullet Points:

• Top 3 Costliest Cities: Hong Kong, Singapore, Zurich.
• Least Expensive Cities: Islamabad, Lagos, Abuja.
• India’s Costliest City: Mumbai (136th globally).
• Other Indian Cities: Delhi (165th), Chennai (189th), Bengaluru (195th), Hyderabad (202nd), Pune (205th), Kolkata (207th).
• Factors Influencing Costs: Inflation, exchange rates, economic and geopolitical volatility.
• Regional Highlights:
  • Europe: London (8th), Copenhagen (11th), Vienna (24th), Paris (29th), Amsterdam (30th).
  • Middle East: Dubai (15th).
  • South America: Uruguay (42nd).
  • North America: New York City (7th).
  • Africa: Bangui (14th).
  • Pacific: Sydney.
• Impact: Adjusted lifestyles, reduced discretionary spending, business challenges in retaining talent.