The most expensive place to live in July 2012 is Hong Kong based on the overall cost of living, encompassing all cost of living baskets. The cost of housing in Hong Kong is one of the largest contributors to making Hong Kong the most expensive place to live.
As the overall global most expensive place to live, Hong Kong has a cost of living index of 149.14, followed by Tokyo with 142.12, and Zurich with 137.12.
Zurich, 3rd most expensive overall and most expensive in Europe, is particularly expensive for groceries, restaurants meals out, hotels and transport.
Cost of Living Excluding Housing, Education, Healthcare and Transport
Moscow is the most expensive place to live in July 2012 based on the cost of living excluding the housing, education, healthcare and transport baskets. Many companies cover these costs on behalf of the employee while on international assignments.
Of the top 50 most expensive places to live based on the cost of living excluding housing, education, healthcare and transport, Europe has 19 locations, the Americas 12, Asia-Pacific 12, Africa 6 and the Middle East 1. The most expensive city in South Asia is Mumbai ranked 570.
Africa, Asia-Pacific, the Middle East and South Asia have 29 places in the top 50 based on the overall cost of living index but only 19 out of 50 places based on the cost of living excluding housing, education, healthcare and transport.
Africa
The oil rich countries of Angola and Nigeria are the most expensive places to live for expatriates in Africa. Luanda is Africa’s most expensive place to live in July 2012, overall. Luanda is followed by Abuja and Lagos in Nigeria.
Luanda’s overall cost of living index of 116.01 is similar to cities such as Brisbane, Copenhagen and Kobe in Japan. In comparison London is 1.5% more expensive, New York 14% cheaper and Cape Town 22% cheaper than Luanda.
Luanda is particularly expensive for restaurants, meals out and hotels.
America
The oil rich countries of Venezuela and Brazil are the most expensive places to live for expatriates in the Americas. Caracas is the Americas most expensive place to live in July 2012, both overall and based on the cost of living excluding the housing, education, healthcare and transport baskets. Caracas is followed by Sao Paulo and Rio de Janeiro in Brazil.
Caracas is particularly expensive for clothing, education and groceries and has an overall cost of living index of 135.70.
Asia Pacific
Hong Kong is approximately 5% more expensive than Tokyo based on the overall cost of living including household accommodation, however if the housing, education, healthcare and transport baskets are excluded, Tokyo is actually around 27% more expensive than Hong Kong. Household accommodation comprises 30% of the overall cost of living index. Hong Kong is very expensive for household accommodation. A 3 bedroomed apartment in Hong Kong costs around 46,000 HKD / 6,000 USD per month to rent compared 300,000 JPY / 3,800 USD in Tokyo, and 4,000 AUD/USD in Sydney.
Europe
Zurich remains the most expensive place to live in Europe based on the overall cost of living, followed by Geneva and Moscow.
Zurich has an overall cost of living index of 137.12 and Moscow 120.96 compared to Hong Kong with an overall cost of living index of 149.14, followed by Tokyo with 142.12. The overall index is comprised of 13 different basket groups. The assumption using the overall index is that everything is paid from the salary package. In addition, the cost of living calculations are weighted according to typical monthly international expatriate spending patterns. The Household Accommodation Basket for example, has a weighting of 30%, while the Groceries Basket has a weighting of 16.5%. That means that an international expatriate who, for example, earns 10,000 would typically spend 3,000 (30% of 10,000) on housing and 1,650 on groceries.
Zurich and Geneva are particularly expensive for groceries, restaurants meals out, hotels and transport. For example a cappucino costs around 4.20 EUR / 5.30 USD in Zurich compared to 4.40 USD in Moscow, 2.35 GBP / 3.70 USD in London and 3.60 USD in New York. A litre of petrol / gasoline costs around 1.60 EUR / 2.00 USD in Zurich compared to 0.95 USD in Moscow, 1.30 GBP / 2.04 USD in London and 1.02 USD in New York.
Moscow is Europe and the world’s most expensive place to live based on the cost of living excluding the housing, education, healthcare and transport baskets, followed in turn by Zurich and Geneva. Many companies cover these costs on behalf of the employee while on international assignments.
Middle East
Abu Dhabi is the Middle East’s most expensive place to live in July 2012 overall. Abu Dhabi is followed by Doha and Dubai.
Abu Dhabi’s overall cost of living index of 101.68 is similar to cities such as Rome, San Francisco and Montreal. On the other hand London is 18% more expensive, New York 1.7% cheaper and Cape Town 11% cheaper than Abu Dhabi.
South Asia
Mumbai is South Asia’s most expensive place to live in July 2012 overall. Mumbai is followed by New Delhi and Surat.
Mumbai is expensive compared to cities in the South Asia region, but is still considered much cheaper than many western cities. Mumbai’s overall cost of living index of 81.41 is significantly lower than cities such as London (48% more expensive), Rome (25% more expensive), New York (23% more expensive) and Cape Town (11% more expensive).
Expatriate International Cost of Living 