New York has claimed the top spot as the world’s most expensive city for expats, overtaking Hong Kong, according to the latest global survey by ECA International. The strength of the dollar, coupled with high inflation and rising rental prices, propelled New York to the number one position in the survey covering 207 cities across 120 countries and territories. Geneva holds onto its third place, remaining the most expensive location in Europe for expatriates, followed by London in fourth. However, other UK cities, including Birmingham, Cardiff, and Belfast, dropped outside the top 100 this year.
ECA International, noted that the UK is facing a cost of living crisis, driven by rising costs in food, utilities, and housing prices. Despite this, all UK cities, except London, have seen a decline in the global ranking, primarily attributed to the weakening pound, making the country more affordable for international visitors.
The past year, marked by the Russian invasion of Ukraine, has introduced exceptional circumstances affecting expat costs globally. Cities hosting Ukrainian refugees experienced surges in accommodation costs, contributing to an overall increase in expat expenses. For instance, Polish cities, particularly Krakow and Warsaw, witnessed substantial rises in rental prices.
Russian expatriates fleeing to cities like Dubai, Yerevan, Nicosia, and Tbilisi also experienced heightened demand and increased rental costs. Dubai, UAE, rose to 12th place in the global rankings due to nearly a third surge in rents. Tbilisi, Georgia, saw rents increase by over a fifth.
Istanbul emerged as the biggest riser in the rankings, climbing 95 places to 108th, driven by a combination of factors, including the impact of the war in Ukraine and economic policies of President Erdogan. The city experienced an 80% increase in prices, partly due to higher demand from displaced Turkish nationals after an earthquake in February.
In Europe, inflation played a significant role in reshuffling the rankings, with over half of cities moving up the index, particularly in the eurozone. Scandinavia, however, witnessed cities like Oslo, Stavanger, Stockholm, and Gothenburg slipping down the table due to the impact of weakening currencies.
The strength of the dollar propelled all US cities up the rankings, with Mexico City being the most significant riser in North America, reaching 92nd place due to the strength of the peso and high inflation. In Asia, Singapore made significant gains, entering the top five most expensive cities globally, while Chinese cities dropped in the rankings due to a weaker yuan and lower inflation rates.
The global top 20 cities for expat costs in 2023 (2022 ranking in brackets) are as follows:
- New York (2)
- Hong Kong (1)
- Geneva (3)
- London (4)
- Singapore (13)
- Zurich (7)
- San Francisco (11)
- Tel Aviv (6)
- Seoul (10)
- Tokyo (5)
- Bern (16)
- Dubai (23)
- Shanghai (8)
- Guangzhou (9)
- Los Angeles (21)
- Shenzhen (12)
- Beijing (14)
- Copenhagen (18)
- Abu Dhabi (22)
- Chicago (25)