Most Expensive Cities in the World in 2023
Are you dreaming of living in a world-renowned city, surrounded by history, architecture, and endless culinary delights? While it may sound like a dream come true, be prepared to open your wallet wide.
Living in some of the most popular and expensive cities in the world can come with a hefty price tag. The good news is that we’re here to help determine which cities come with the highest price tags.
From Tokyo to New York, Paris to Shanghai, we’ve got the scoop on the most expensive cities in the world.
So, whether you’re in the market for a new place to call home or just want to satisfy your wanderlust, be sure to check out this list for some inspiration.
10 Most Expensive Cities in the World
The 10 most expensive cities in the world, according to Mercer’s Cost of Living City Ranking 2022, are listed below. We’ve also included a section on living expenses based on Numbeo data.
Please keep in mind that these data are subject to change, which is why we recommend conducting a comprehensive study when deciding to relocate to a specific place.
We’ve converted the local currencies to US dollars.
Beijing
BeijingBeijing, China's thriving capital, holds the tenth spot as one of the most expensive cities in the world. With extravagant shopping centers and upscale dining options, Beijing offers a taste of the luxurious lifestyle.
Unlike most Chinese cities, Beijing is around the same price as many European capitals, especially for expats who are accustomed to a high level of comfort and insist on buying imported products. Fortunately, foreigners in Beijing tend to earn pretty well, which usually offsets the high expense of living.
When compared to other Chinese cities, Beijing’s rent is high, and expats may expect to pay a significant portion of their earnings for residences in and around the city center. Accommodation on the outskirts of the city is significantly cheaper, especially if you live with roommates to further reduce costs.
Category | Item | Cost |
Accommodation | One-bedroom apartment in the city center | $1,200 |
One-bedroom apartment outside the city center | $672 | |
Restaurants | McMeal at McDonald’s | $5.62 |
Meal, Inexpensive Restaurant | $4.22 | |
Cappuccino | $4.55 | |
Beer | $4.08 | |
Markets | Milk (1 liter) | $2 |
Loaf of Fresh White Bread (500g) | $2.08 | |
Eggs (12) | $1.79 | |
Banana (1kg) | $2.87 | |
Utilities | Basic (Electricity, Heating, Cooling, Water, Garbage) | $55 |
Internet | $21 |
Tokyo
TokyoRanked as the ninth most expensive city in the world, Tokyo offers a captivating mix of modern and traditional Japanese culture.
Japan is well-known for its high living costs, particularly in Tokyo. As a vibrant metropolis that is consistently ranked among the world’s top ten most expensive cities, most residents spend a lot of money on high rent prices, followed by automobile ownership and transportation.
However living in Tokyo, the capital city of Japan, means experiencing one of the world’s most active cities. This city of over 10 million people is known for its rich culture, amazing gastronomy, efficient transit, and friendly people.
Category | Item | Cost |
Accommodation | One-bedroom apartment in the city center | $1,050 |
One-bedroom apartment outside the city center | $600 | |
Restaurants | McMeal at McDonald’s | $4.83 |
Meal, Inexpensive Restaurant | $6.90 | |
Cappuccino | $3.18 | |
Beer | $3.93 | |
Markets | Milk (1 liter) | $1.31 |
Loaf of Fresh White Bread (500g) | $1.54 | |
Eggs (12) | $1.79 | |
Banana (1kg) | $2.87 | |
Utilities | Basic (Electricity, Heating, Cooling, Water, Garbage) | $154 |
Internet | $31.43 |
Singapore
SingaporeSingapore ranks as the eighth most expensive city in the world, offering a prosperous economy and lavish attractions, as well as a high-end lifestyle.
Singapore is known as one of the most expensive cities in Asia. The land is extremely rare due to the small size of the country. Furthermore, as demand for real estate has soared, supply has been constrained, making the real estate market extremely competitive. In addition, Singapore has few natural resources and must rely on ports to import essential requirements such as water and natural gas energy.
Singapore is recognized as a global financial hub, which is why it is such a popular destination for digital nomads and expat employees from the United States and the United Kingdom. However, the expenses of renting and purchasing a home in Singapore are higher.
Category | Item | Cost |
Accommodation | One-bedroom apartment in the city center | $2,310 |
One-bedroom apartment outside the city center | $1,669 | |
Restaurants | McMeal at McDonald’s | $5.58 |
Meal, Inexpensive Restaurant | $10.46 | |
Cappuccino | $4.08 | |
Beer | $6.97 | |
Markets | Milk (1 liter) | $2.27 |
Loaf of Fresh White Bread (500g) | $1.27 | |
Eggs (12) | $2.52 | |
Banana (1kg) | $2.33 | |
Utilities | Basic (Electricity, Heating, Cooling, Water, Garbage) | $130 |
Internet | $31.87 |
New York
New YorkRanked as the seventh most expensive city in the world, New York City offers an extravagant lifestyle amidst its iconic skyline.
New York is the only North American city to make the top 10 expensive cities list. This city is the land of opportunities, attracting individuals from the United States and the rest of the world, all competing to establish a name for themselves in the city. As a result, it’s no surprise that living in New York City is so expensive!
Moving to New York City is an excellent decision if you are looking for better work prospects or a new experience. There is never a dull moment in this city, which has a wealth of cultural sites and never-ending entertainment opportunities. Whether or not the expense is worthwhile depends on where you choose to live in the city and what type of job you have.
Category | Item | Price |
Accommodation | One-bedroom apartment in the city center | $2,941 |
One-bedroom apartment outside the city center | $2,359 | |
Restaurants | McMeal at McDonald’s | $10 |
Meal, Inexpensive Restaurant | $25 | |
Cappuccino | $5.30 | |
Beer | $8 | |
Markets | Milk (1 liter) | $1.21 |
Loaf of Fresh White Bread (500g) | $4 | |
Eggs (12) | $4 | |
Banana (1kg) | $2.62 | |
Utilities (monthly) | Basic (Electricity, Heating, Cooling, Water, Garbage) | $175 |
Internet | $68 |
Tel Aviv
Tel AvivTel Aviv ranks as the sixth most expensive city in the world. Its high cost of living is due to the city's booming economy, thriving nightlife, and popularity among tourists.
Tel Aviv has it all, from beautiful beaches to lively nightlife and world-class restaurants. However, all of that fun comes at a high cost. Tel Aviv, Israel’s largest city, has a reputation for being not just vibrant but also one of the most expensive cities, even for those whose income is dollars, euros, or other major currencies.
You can always expect to pay high rent in Tel Aviv. This is one of Israel’s most popular tourist destinations, and its standards are comparable to those of more expensive European cities such as Rome or Paris. So, regardless of where you live in Tel Aviv, the same flat would cost far more than in any other city in Israel.
|
Category |
Item |
Price |
|
Accommodation |
One-bedroom apartment in the city center |
$1,625 |
|
One-bedroom apartment outside the city center |
$1,270 |
|
|
Restaurants |
McMeal at McDonald’s |
$15.36 |
|
Meal, Inexpensive Restaurant |
$18.15 |
|
|
Cappuccino |
$3.95 |
|
|
Beer |
$8.94 |
|
|
Markets |
Milk (1 liter) |
$1.69 |
|
Loaf of Fresh White Bread (500g) |
$2.50 |
|
|
Eggs (12) |
$3.77 |
|
|
Banana (1kg) |
$2.22 |
|
|
Utilities (monthly) |
Basic (Electricity, Heating, Cooling, Water, Garbage) |
$261 |
|
Internet |
$29 |
Bern
BernBern, Switzerland’s capital city, is another city that always finds a spot in the top 10 most expensive cities in the world list. Bern is famous for its medieval architecture, fountains, and rich history and it is a UNESCO World Heritage Site.
Despite its small-town atmosphere, Bern is unlikely to be the most affordable place you’ve ever lived. Having said that, it is significantly less expensive than both Zurich and Geneva, while being within easy reach of both. Bern also provides a good selection of housing options both within the city and within the surrounding metropolitan area.
Category | Item | Price |
Accommodation | One-bedroom apartment in the city center | $1,200 |
One-bedroom apartment outside the city center | $935 | |
Restaurants | McMeal at McDonald’s | $15.16 |
Meal, Inexpensive Restaurant | $25.27 | |
Cappuccino | $5.23 | |
Beer | $6.07 | |
Markets | Milk (1 liter) | $1.58 |
Loaf of Fresh White Bread (500g) | $2.72 | |
Eggs (12) | $5.84 | |
Banana (1kg) | $2.87 | |
Utilities (monthly) | Basic (Electricity, Heating, Cooling, Water, Garbage) | $197 |
Internet | $51 |
Basel
Basel, Switzerland’s oldest university city, is located on the Rhine River, close to the country’s borders with France and Germany, and hosts the world’s largest art market every June.
Basel is a green city where you may enjoy sports, games, and relaxation all year long in small neighborhood oases and city parks. But everything comes with a price and this gorgeous city is the fourth most expensive city to live in the world.
Category | Items | Price |
Accommodation | One-bedroom apartment in the city center | $1,391 |
One-bedroom apartment outside the city center | $1,148 | |
Restaurants | McMeal at McDonald’s | $16.17 |
Meal, Inexpensive Restaurant | $25.27 | |
Cappuccino | $5.23 | |
Beer | $6.07 | |
Markets | Milk (1 liter) | $1.67 |
Loaf of Fresh White Bread (500g) | $3.19 | |
Eggs (12) | $5.67 | |
Banana (1kg) | $2.56 | |
Utilities (Monthly) | Basic (Electricity, Heating, Cooling, Water, Garbage) | $271 |
Internet | $50 |
Geneva
Nestled in the heart of Switzerland, Geneva is renowned for its breathtaking natural beauty and high standard of living, but also boasts a place as the third most expensive city in the world.
Geneva, known for the Jet d’Eau, the world’s biggest water fountain, is a city with dozens of luxury cafés and shopping for days. But all of that luxury comes at a great cost. Yes, Geneva is an expensive city but the high expense of living doesn’t deter people from relocating to Geneva; over 40 percent of all residents in Geneva do not hold a Swiss passport, making Geneva one of the most international cities in the world.
Geneva is a lovely city with a lot to offer and this is why many foreigners opt to reside there. Despite its high cost of living, the city provides a high standard of living.
Category | Item | Price |
Accommodation | One-bedroom apartment in the city center | $1,913 |
One-bedroom apartment outside the city center | $1,494 | |
Restaurants | McMeal at McDonald’s | $15.16 |
Meal, Inexpensive Restaurant | $25.27 | |
Cappuccino | $5.28 | |
Beer | $7.08 | |
Markets | Milk (1 liter) | $1.57 |
Loaf of Fresh White Bread (500g) | $2.71 | |
Eggs (12) | $5.35 | |
Banana (1kg) | $2.56 | |
Utilities | Basic (Electricity, Heating, Cooling, Water, Garbage) | $184 |
Internet | $53 |
Zurich
With just one look at Zürich, you can tell why it is one of the most expensive cities in the world. The financial capital, located at the northern end of Lake Zurich, is known for its waterfront promenades, high-end shopping, and exquisite chocolate. It is also the most expensive city in Switzerland to find a house to rent.
Zurich does have a reputation for being an expensive city. This is true for both regular living expenses and real estate. Fortunately, the net pay is among the highest in the world, and there are lots of job positions for foreigners.
Category | Item | Price |
Accommodation | One-bedroom apartment in the city center | $1,913 |
One-bedroom apartment outside the city center | $1,494 | |
Restaurants | McMeal at McDonald’s | $15.16 |
Meal, Inexpensive Restaurant | $25.27 | |
Cappuccino | $5.28 | |
Beer | $7.00 | |
Markets | Milk (1 liter) | $1.71 |
Loaf of Fresh White Bread (500g) | $3.04 | |
Eggs (12) | $5.60 | |
Banana (1kg) | $2.83 | |
Utilities (monthly) | Basic (Electricity, Heating, Cooling, Water, Garbage) | $241 |
Internet | $48 |
Hong Kong
Hong Kong, located in southeastern China, tops the list as the world's most expensive city. With sky-high prices for accommodation, restaurants, and necessities like milk and bread, the city's cost of living is notoriously high.
Asia dominates the list of the top 10 most expensive cities to live in, so it’s no surprise that Hong Kong takes the top spot. Hong Kong is noted for drawing some of the world’s most successful and wealthiest businessmen, as well as thousands of expats.
It’s not so much the expense of rent as it is the competitive demand for housing and all the activities the city has to offer, such as its numerous markets, nightlife, and sights, that make it the world’s priciest city.
Category | Item | Price (USD) |
Accommodation | One-bedroom apartment in the city center | $2,200 |
One-bedroom apartment outside the city center | $1,619 | |
Restaurants | McMeal at McDonald’s | $5.10 |
Meal, Inexpensive Restaurant | $7.64 | |
Cappuccino | $5.02 | |
Beer | $6.34 | |
Markets | Milk (1 liter) | $3.04 |
Loaf of Fresh White Bread (500g) | $2.24 | |
Eggs (12) | $3.41 | |
Banana (1kg) | $2.54 | |
Utilities (Monthly) | Basic (Electricity, Heating, Cooling, Water, Garbage) | $196 |
Utilities (monthly) | Internet | $22 |
Factors That Make a City Expensive
There are several factors that add up and cause a city to be one of the most expensive in the world. These factors include the following:
- Strong currency: A city with a strong currency will have higher prices for goods and services due to the purchasing power of the local currency.
- High inflation: Inflation can cause prices to rise rapidly, which can make a city more expensive to live in.
- High cost of living: A high cost of living can be a result of a variety of factors, including high taxes, high rents, and high wages.
- Limited housing supply: If the supply of housing is limited, prices can increase due to high demand.
- High demand for goods and services: If a city has a high demand for goods and services, prices can increase due to market forces.
- High levels of wealth: Cities with high levels of wealth tend to have higher prices for goods and services.
- Geographical location: Cities in remote or hard-to-reach areas may have higher prices due to transportation costs.
- Political stability: Cities with stable governments and low levels of corruption tend to have higher prices due to increased investor confidence and economic stability.
Most Expensive Cities: The Wrap Up
So, there you have it, the most expensive cities to live in the world.
Whether you’re a seasoned traveler or a potential expat, it’s always a must to do your research and understand the cost of living in the city you choose.
In this list, we tried to provide an in-depth analysis of the cost of goods and services, which can help you make more informed decisions.
This study isn’t just for individuals either; it assists multinational corporations and governments in creating compensation policies for their foreign workers and expat personnel.
If you’ve ever visited or plan to visit one of these expensive cities, we’d love to hear about your experiences. After all, the world is vast, and there’s always room for more travel and exploration.
Source: Mercer Cost of Living City Ranking 2022
Cheapest Cities in the World
Ranks | Cities | Country | Index |
161 | Colombo | Sri Lanka | 38 |
161 | Bangalore | India | 38 |
161 | Algiers | Algeria | 38 |
164 | Chennai | India | 37 |
165 | Ahmedabad | India | 35 |
166 | Almaty | Kazakhstan | 34 |
167 | Karachi | Pakistan | 32 |
168 | Tashkent | Uzbekistan | 31 |
169 | Tunis | Tunisia | 30 |
170 | Tehran | Iran | 23 |
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What are the most expensive cities in the world?
The most expensive cities in the world are usually in countries with high standards of living and a high cost of living. These cities are often among the best places to live in the world, but they can also be in countries with a lower quality of life.
Is it worth living in the most expensive cities in the world?
It depends on individual preferences and priorities. The most expensive cities in the world may offer better job opportunities, higher salaries, and a better quality of life compared to other places. However, the cost of living may also be very high, making it difficult to afford basic necessities.
What country has the best quality of life?
The best country in the world for quality of life depends on individual preferences and priorities. Some of the countries that are often considered to have a high quality of life by country include Norway, Denmark, Switzerland, Finland, and Canada. These countries offer a high standard of living, good healthcare, education, and social welfare systems, as well as opportunities for outdoor recreation and cultural experiences.
Can you have a good quality of life in countries with a lower cost of living?
Yes, it's possible to have a good quality of life in countries with a lower cost of living. Countries with lower costs of living may offer lower salaries, but they also offer lower prices for basic necessities, housing, and entertainment. Additionally, countries with a lower cost of living may have a unique culture, natural beauty, and opportunities for travel and adventure that can contribute to a high quality of life.
Are there any ways to save money while living in these cities?
Yes, there are many ways to save money while living in these cities. Some strategies include living outside of the city center, using public transportation instead of owning a car, cooking at home instead of eating out, and shopping at local markets instead of high-end stores. Additionally, many companies offer cost-of-living adjustments for employees who move to these cities.
What are some tips for living in an expensive city without breaking the bank?
Some tips for living in an expensive city include:
- Renting a smaller apartment or living outside the city center
- Cooking at home and avoiding eating out too often
- Using public transportation or biking instead of owning a car
- Taking advantage of free events and activities
- Negotiating for better prices on goods and services when possible
- Saving money in other areas of your life to offset the higher cost of living.
How can I prepare financially for living in an expensive city?
Some ways to prepare financially for living in an expensive city include:
- Researching the cost of living and creating a budget before moving
- Saving up enough money to cover several months of expenses
- Finding a job that pays a competitive salary for the city
- Negotiating for relocation assistance or other benefits with your employer
- Exploring ways to supplement your income, such as freelance work or a side hustle.