Here is an interesting perspective of Doha, Qatar from an expat who has lived there for seven years and watched the diverse changes from the building of a city to sporting and cultural events….
Luanda, Angola ranks #1 while Caracas, Venezuela ranks #2. Unlike Luanda and Caracas, Oslo which ranks #3 enjoys low inflation, low unemployment, and one the highest GDPs per capita in the World.
Caracas in contrast has experienced rampant inflation, shortages and tight government controls on foreign exchange pushing it up the rankings. As the World’s fifth largest exporter of oil, Venezuela was once a top destination for skilled foreign oil and gas workers.
It’s attractiveness for expats has been steadily eroded by strict government regulations that limit hiring and compensation for foreign workers and by the soaring cost of living.
Luanda once again retains the position of most expensive destination globally and in Africa for expats due to its costly accommodation where expatriate housing is extremely expensive and imported produce and international private schooling excessively costly.
Singapore has risen to the top spot in the list of the most expensive cities in the Asia-Pacific region for foreign workers. Singapore leaped past previous list leader, Hong Kong and the long time most expensive city in the World, Tokyo.
Oslo, Norway jumped ahead of Zurich and Geneva to become the most expensive European city for foreign workers. The rankings, which are updated quarterly, saw Zurich fall from 1st among the World’s most expensive cities in mid-2013 to 6th in the first quarter of 2014. Oslo has moved from 10th to 3rd during the same period of time.
Doha ranked 127th in the World, making its cost of living comparable with cities like Glasgow, Scotland and Edmonton, Canada.
Top 10 City Rankings (all 13 baskets)
| April Ranking | Location | January Ranking |
|---|---|---|
| 1 | Luanda, Angola | 1 |
| 2 | Caracas , Venezuela | 5 |
| 3 | Oslo , Norway | 7 |
| 4 | Singapore, Singapore | 13 |
| 5 | Hong Kong, China | 6 |
| 6 | Zurich, Switzerland | 2 |
| 7 | Geneva, Switzerland | 4 |
| 8 | Monaco, Monaco | 11 |
| 9 | Tokyo, Japan | 12 |
| 10 | Sydney, Australia | 17 |
Top Ten City Rankings Excluding Housing, Education, Medical and Transport
While on international assignments ensure that you or your employee’s spending power is not compromised by changes in inflation, the availability of goods as well as exchange rates. Multinational companies will often include a cost of living allowance in their pay packages to ensure that employee’s remuneration packages are not compromised by changes in the relative cost of living.
Xpatulator.com city rankings show Luanda Angola at #1, Caracas Venezuela #2 and Oslo Norway #3.
Here are the Top 10 City Rankings including all 13 basket groups:
Top 10 City Rankings (all 13 baskets)
| April Ranking | Location | January Ranking |
|---|---|---|
| 1 | Luanda, Angola | 1 |
| 2 | Caracas , Venezuela | 5 |
| 3 | Oslo , Norway | 7 |
| 4 | Singapore, Singapore | 13 |
| 5 | Hong Kong, China | 6 |
| 6 | Zurich, Switzerland | 2 |
| 7 | Geneva, Switzerland | 4 |
| 8 | Monaco, Monaco | 11 |
| 9 | Tokyo, Japan | 12 |
| 10 | Sydney, Australia | 17 |
For the full listings go here.
The below grid shows the Cost of Living Index (COLI) variances over the last 6 years from January 2009 to January 2014
1. The most noticeable change in Cost of Living Index (COLI) is Tokyo from 142.96 to 122.9 index points, this is primarily due to the Yen weakening against the US Dollar, hitting a five year low in 2013 and having lost more than 20% to the US Dollar in the past year.
2. Luanda in Angola has moved from an index of 107.06 in 2009 to a 140.4 in 2014 making it the most expensive destination for expats in Africa and the world. This change is mainly due to supply and demand of expat accommodation which is costly. A rented house in a guarded community can cost between US$8 000 and US$12 000 per month, other costs for schooling, groceries and entertainment are also costly.
3. On an upward trend is Singapore moving from an index of 87.78 in 2009 to 122.3 in 2013, this is due to the continued expat influx resulting in a high demand for expat accommodation and goods, high transport costs, and high infrastructure costs, coupled with a strong currency. The Singapore COLI could continue this upward trend.
4. Caracas shows upward movement back to its high COLI in 2011 of 142.1, from 112.39 in 2009 to 137.4 in 2014, this is due to the high inflation and rentals, however there is again pressure on the currency to be devalued which should temporarily bring costs down in the short term.
Transport Basket, Weight=18% of calculation, includes items such as fuel (petrol/gasoline), public transport, vehicle purchase and maintenance
Thinking of moving to another city? Thinking of moving to a new job? Or perhaps you company is relocating you?
Have you considered the expenses that you are going to incur on the other side, or the savings you may make or not?
As we progress into 2014 and the cost of living changes in many parts of the world, have you considered what is happening in your expat city?
The latest rankings indicate that Luanda is the most expensive city in the world to move to as an expat. The main reason for this is the lack of good accommodation in certain locations available to expats, this has resulted in high rentals for properties. Currency fluctuations and the impact of inflation on goods and services have affected the global city rankings and therefore impacted expenses of expatriate programs over the past year. Added to this goods that are imported, mainly for foreigners, are done so at high costs. Although, Luanda is one of Africa’s major oil producers, it also has some of the continents highest poverty levels and yet is not only the most expensive city in Africa but also in the world.
Taking all the basket groups into account, Household Accommodation, which includes rentals, is one of the biggest cost of living expenses for employees and comprises 30% of the cost of an expatriate’s expenditure. Therefore it is important to be aware that when researching a move to another city or country, that even though property may be generally cheap for the local population of a country, this may not be of the same quality that most expats expect. In many cases expensive accommodation is found in poorer or low cost countries, because there is usually very little appropriate accommodation available. High demand low availability and high costs result.
Which other cities are on the top ten most expensive list? Zurich and Geneva in Switzerland continue to top the list despite the decrease in accommodation costs and a stable and strong Swiss Franc.
Despite the large falls in the value of the Bolivar, Caracas moves up the rankings from January 2013, this is due to the increase in inflation of between 30 and 40% in 2013, and the severe shortages of imported goods.
Companies who send their employees on assignments to Venezuela, should continuously monitor the situation to ensure that they are adjusting expatriate cost of living allowances appropriately. Because the Bolivar is pegged to the USD, it remains considerably overvalued, however the increasing pressure on the currency could lead to its further devaluation. Prices in Caracas’ basket groups have increased substantially over the past year. Although a devaluation would initially further increase inflation, the shortage of dollars on goods on shop shelves will worsen if this does not occur.
Due primarily to a weaker Yen – hitting a five year low, having lost more than 20% to the US dollar in the past year – Tokyo has slipped down through the rankings throughout 2013 having been in the top three most expensive locations up until April 2013, it is now ranked 12th most expensive in the world. I has remained in the top 20 due to high infrastructural costs such as its high rentals.
Singapore has also remained within the most expensive expatriate locations due to high rental costs, this has also pushed Chad in Ndjamena up the rankings from 185th to become the 28th most expensive expatriate city.
The weakening currencies against the USD in the past year, has contributed to lower cost of living indexes for assignees going to these countries, but higher indexes for those being posted from these countries, currencies that have weakened are: Argentina (34%), Australia (16%), Brazil (16%), Ghana (25%), India (13%), Indonesia (25%), Malawi (30%), Mongolia (20%), Myanmar (14%), Papua New Guinea (21%), South Africa (26%), Turkey (21%).
For all the Year to Year Top City Cost of Living Rankings go here
Regional Highlights for Africa, Americas, Europe, Asia Pacific, Middle East and South Asia go here
While on international assignments ensure that you or your employee’s spending power is not compromised by changes in inflation, the availability of goods as well as exchange rates. Multinational companies will often include a cost of living allowance in their pay packages to ensure that employee’s remuneration packages are not compromised by changes in the relative cost of living.
Steven McManus is the founder of Xpatulator.com that provides cost of living information for locations worldwide, including COL index, hardship index, and mobility calculators used when moving or relocating on an international assignment to a global destination. The four difference calculators use a customizable COL index, hardship index, exchange rate and assignment salary to calculate an equivalent expat salary, depending on your requirements.
Globally and in Africa, Luanda Angola is the most expensive destination for expats despite the obvious poverty and sprawling slums. The Swiss cities of Zurich and Geneva still maintain their positions in the top ten, while Caracas moves up the rankings to fourth most expensive.
Xpatulator Cost of Living Rankings – Luanda Tops the List as most expensive city to live as an expatriate for first quarter 2014
Travel Guides (Photo credit: Vanessa (EY))
And by essentials I mean they’re completely optional. We all travel differently and have varying expectations and goals for our excursions. Some of us have embraced technology and the age of social media and [over] sharing and others like to keep things decidedly simple, or at least as simple as travel. However, for those who have embraced technology and are looking for ways to keep in touch with home, there are several ways to go about doing just that. In fact, there are five major ways you, the social traveler, can maintain communication with home and the world.
While a travel blog is certainly not for everyone, it’s a fun and engaging way to keep family, friends, and—if you have any—internet followers. Blogs are a great alternative to journals because, not only can other people read them (which may cause you to hold back certain, ahem, “details”) but you can also incorporate pictures into your posts creating a highly visual experience allowing your readers to follow you on your journey. Of course, if writing isn’t something you want to put time into, you could make it strictly a photo blog. The problem with blogging, as highlighted in the last sentence, it the time requirement, you have to write and keep it up, otherwise there really isn’t a point.
The time investment of keeping a social media presence is less than keeping a travel blog, but it still can be fairly intensive, depending on how much you actually want to put into it. You can keep a low or a high profile, choosing whether or not you engage people. You can effectively use some social media sites in place of a blog, or you can offer mini updates through a site such as Twitter, or update a photostream on Flickr.
If you still want to be able to call home, having a cell phone capable of dialing internationally is a must. US travelers may need to check with their phone provider to see if their phone will work internationally. If it doesn’t, you can take the necessary steps to render the phone capable of international calls (which, depending on the phone may require unlocking and a new SIM card) or you can purchase a new phone at your destination, which is generally an inexpensive route to go.
If you do decide to pick up a new phone, you may need to pick up an international calling card to keep service charges and fees in control, since fees to call to various international destinations vary wildly, usually toward the ridiculously expense end of the cost spectrum. Like cell phone plans, calling cards come in a variety denominations and it’s usually best to pick up smaller denominations to avoid wasting money and minutes you may never use, depending on your calling habits.
When you have regular internet access, using a phone, either cellular or landline, might not even be necessary with all the voice-over internet protocol (VOIP) services out there. You can maintain contact, either voice or visual/voice, and it’s a great way to keep in contact for cheap, but at the same time you will need a stable and fairly decent internet connection.
About the Author: Andrei Milosevic is an international student, traveler, and writer. Over the past few years, he has been studying international business and providing advice and insight into making international calls. In his free time he kayaks and Skypes with his best friend back home in Serbia.
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