Indian Cities Becoming Costlier For Expatriates

Make no mistake. It is not some US or European city where the cost of living for expatriates is the highest in the world. According to Mercer's 23rd annual Cost of Living Survey, it is an African city. Again, the least expensive city for expatriates is also an African city.

Let us look at some other interesting findings of the survey.

Which are the most expensive cities for expatriates?

The list is topped by Angola capital Luanda. The high cost, the survey points out, is owing to the cost of goods and security in the city. Following second is Hong Kong, the least affordable property market in the world. According to The Chinese University of Hong Kong's' Quality of Life Index, the house price-to-income ratio rose 275 per cent between 2002 and 2014. Positioned third in the list is Japan capital Tokyo. According to a recent survey by Deutsche Bank, one has to spend as much as $2,010 to rent a two-bedroom unit in this city where property prices are constantly rising. Other cities occupying the top 10 slots include Zurich, Singapore, Seoul, Geneva, Shanghai, New York City and Bern, in the descending order.

Where do Indian cities stand?

In the survey that includes 209 cities across five continents, none of the Indian cities made it to the top 50.  However, when compared to last year, the cost of living in Indian cities for expatriate has gone up substantially. India's financial capital Mumbai, for instance, is placed at 57th spot in this year's list. In 2016, it occupied the 82th position. This is an upwards movement of 25 notches. 

Similarly, national capital New Delhi moved to 99th position this year from its previous ranking of 130, Chennai came to 135th position this year from its previous ranking of 158, Bengaluru was ranked 166 from its earlier ranking of 180 and Kolkata moved to 184th spot from 194.

"Residential rental prices increased in Mumbai and New Delhi. Due to demonetisation, real estate sales market has been severely hit. However, the rental market benefited from the consumers' sudden withdrawal from the purchase market, thereby putting pressure on rental prices," a Press Trust of India report quoted Ruchika Pal, India Practice Leader, Global Mobility at Mercer, as saying.

Which are the least expensive cities?

The world's least expensive cities for expatriates are Tunisia capital Tunis (ranked 209), Kyrgyzstan capital Bishkek (ranked 208) and Capital of the Republic of Macedonia Skopje (ranked 206).