Mumbai Tops List As India's Most Expensive City For Expatriates; Hong Kong Costliest For Overseas Workers

Cost of Living Survey: Mumbai is now the 21st most expensive city, with New Delhi following at 30th

Mercer's 2024 Cost of Living Survey: Mumbai continues to hold its position as the most expensive city in India for expatriates, according to Mercer's 2024 Cost of Living Survey released on June 17 (Monday). The survey evaluated living costs in over 400 cities globally, with Mumbai climbing to 136th place worldwide, marking a significant jump from its previous rank.

In the Asian context, Mumbai is now the 21st most expensive city, with New Delhi following at 30th. These rankings mirror the broader economic trends impacting the region. "In the face of global economic challenges, India has remained largely resilient," said Rahul Sharma, India's Global Mobility Leader at Mercer. "Despite Mumbai’s rise in rankings, the overall affordability of Indian cities remains a key advantage for multinational organisations or Indian companies looking to attract global talent."

Globally, Hong Kong retained its position as the most expensive city. In India, New Delhi is ranked 164th, with Chennai, Bengaluru, Hyderabad, Pune, and Kolkata at 189th, 195th, 202nd, 205th, and 207th, respectively. Notably, New Delhi and Pune have climbed in the rankings, while Chennai and Bengaluru have fallen.

Expat housing costs have surged, with Delhi experiencing the highest increase of 12-15 per cent, followed by Mumbai (6-8 per cent), Bengaluru (3-6 per cent), and Pune, Hyderabad, and Chennai (2-4 per cent). Kolkata saw the smallest increase, under 2 per cent.

Delhi boasts the lowest costs for alcohol and tobacco, whereas Chennai has seen a 20 per cent price hike over the past year. Mumbai, however, tops the chart for transportation costs, with Bengaluru next in line.

Kolkata offers the most economical prices for essentials such as milk, dairy products, bread, beverages, oils, fruits, and vegetables, followed by Pune.

In terms of energy and utility costs, Mumbai and Pune lead, while Mumbai is also the most expensive city for personal care items like cosmetics and toiletries. Chennai is also costly in this category, with Kolkata being the least expensive.

Global arena

Among the top 10 most expensive cities for international assignees, five are in Western Europe, with Switzerland home to four. Southeast Asian cities dominate the list, with Hong Kong and Singapore holding the first and second spots, respectively. The two most affordable cities are Lagos (225th) and Abuja (226th), both in Nigeria.

Europe

European cities feature prominently among the top 10 most expensive places to live. Alongside the four Swiss cities, London is ranked 8th. Other costly cities in Europe include Copenhagen (11th), Vienna (24th), Paris (29th), and Amsterdam (30th).

Middle East

In the Middle East, Dubai has ascended the rankings to become the most expensive city for international employees, at 15th globally, up three places from 2023. Tel Aviv follows at 16th, having dropped eight places. Abu Dhabi (43rd), Riyadh (90th), and Jeddah (97th) complete the list for the region.

South America

Montevideo in Uruguay is the most expensive city in South America at 42nd place. It is followed by Buenos Aires (77th, down 32 places) and São Paulo (124th). Buenos Aires and Santiago in Chile (160th) have seen significant drops in their cost of living rankings.

North America

In North America, New York City (7th globally) remains the most expensive, followed by Nassau, Bahamas (9th), Los Angeles (10th), Honolulu (12th), and San Francisco (13th). Mexico City and Monterrey saw notable increases in their rankings, climbing to 33rd and 115th, respectively.

Africa

African cities with high costs of living include Bangui (14th, up 12 places), Djibouti (18th), and N'Djamena (21st). The least expensive in the region are Blantyre (221st), Lagos (225th, down 178 places), and Abuja (226th).

Asia

In Asia, apart from Hong Kong and Singapore, the most expensive cities are Shanghai (23rd), Beijing (25th), and Seoul (32nd). The least expensive are Karachi (222nd), Bishkek (223rd), and Islamabad (224th).

Asia-Pacific

In the Pacific region, Sydney is the most expensive at 58th place, followed by Noumea, New Caledonia (60th); Melbourne (73rd); and Brisbane (89th). New Zealand’s Auckland and Wellington remain the least expensive Pacific locations, at 111th and 145th, respectively.