Nigeria’s Abuja and Lagos are most affordable cities to live in for international assignees, thanks to currency depreciation.
- According to Mercer’s 2024 cost-of-living data, Namibia’s Windhoek, South Africa’s Durban, and Malawi’s Blantyre are also ranked among the least expensive cities in the world in 2024, with Nairobi ranking 201.
- African cities that placed highest in global Cost of Living City Ranking are Bangui (14, up 12 places), Djibouti (18) and N’Djamena (21).
- Mercer’s annual Cost of Living City Ranking provides valuable trends and insights for those who need to make informed decisions about global mobility operations and international assignees.
In February, IMF in its 2024 Post–Financing Assessment and Staff Report disclosed exchange rate of Naira may further depreciate by about 35 percent this year, adding this could lead to inflation rate peaking at 44 percent before the monetary policy tightening could bring the situation under control.
The ranking lists 226 cities in the world in order, from most expensive to least expensive places to live. It serves as a valuable compass, providing guidance through intricate landscape of living expenses in cities worldwide.
According to data, Hong Kong, Singapore and Zurich are currently the costliest cities for international workers.
These three cities have kept the same positions in Mercer’s rankings they had last year. A number of key factors have influenced the world’s economy in recent years. In 2024, these factors continue to have an impact on the cost of living in major cities.
Inflation and exchange-rate fluctuations are directly affecting pay and savings of internationally mobile employees (or those executing an international assignment), heightened economic and geopolitical volatility, as well as local conflicts and emergencies, have led to additional expenses in areas such as housing, utilities, local taxes and education.
In the case of higher-ranking cities (Hong Kong, Singapore and Zurich), factors such as expensive housing markets, high transportation costs and higher cost of goods and services have all contributed to high living costs.
Regional Overview
Of the 10 most expensive cities for international assignees, half are located in Western Europe, with Switzerland being home to four.
European cities feature heavily in top 10 most expensive places to live. In addition to the four Swiss cities, London has joined the top 10 ranking in 8th place. Other expensive cities in the region include Copenhagen (11), Vienna (24), Paris (29) and Amsterdam (30).
Dubai has jumped up the rankings to become the costliest city in Middle East for international employees. It is ranked 15th on global ranking, up three places from 2023. The next most expensive city in this region is Tel Aviv, which has dropped by eight places to rank 16th. It is followed by Abu Dhabi (43), Riyadh (90) and Jeddah (97).
Within South America, Montevideo in Uruguay ranks as the most expensive location for international employees at number 42. It is followed by Buenos Aires (77, down 32 places) and Sao Paulo (124). It is worth noting that, in addition to Buenos Aires becoming a less expensive place to live, Santiago in Chile also fell 73 places to 160th on the list.
In North America, New York City (number 7 in the global ranking) remains the most expensive city. It is followed by Nassau, Bahamas (9), Los Angeles (10), Honolulu (12), and San Francisco (13). The biggest differences found in North America’s year-on-year rankings are both in Mexico. The capital, Mexico City, went up 46 places to 33, and Monterrey went up 40 places to 115.
Expensive cities in Asia include Shanghai (23), Beijing (25) and Seoul (32). Some of the least expensive cities in the region are Karachi (222), Bishkek (223) and Islamabad (224).
For Pacific region, Sydney tops the list at 58th place, followed by Noumea, New Caledonia (60); Melbourne (73); and Brisbane (89). New Zealand’s Auckland and Wellington remain the least expensive Pacific locations, coming in at 111th and 145th, respectively.
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