Mercer's 2009 Cost of Living Survey names Tokyo as the most expensive city in the world
FRONT PAGE
SiteSearch
About us
Directories
UBS: Most expensive and richest cities
ECA: Most expensive cities
EIU: Most expensive cities
Mercer: Most expensive cities
World's richest cities (GDP)
Richest cities (earnings)
Most powerful cities
World's best financial cities
Europe's top city brands
Real estate USA
Real estate Europe
European business cities
Best world cities to live in
Global cities
City Mayors reports news from towns and cities around the world. Worldwide | Elections | North America | Latin America | Europe | Asia | Africa | Events |
Mayors from The Americas, Europe. Asia, Australia and Africa are competing for the annual World Mayor Award. More
City Mayors ranks the world’s largest as well as richest cities and urban areas. It also ranks the cities in individual countries, and provides a list of the capital cities of some 200 sovereign countries. More
City Mayors lists and features urban events, conferences and conventions aimed at urban decision makers and those with an interst in cities worldwide. More
City Mayors reports political events, analyses the issues and depicts the main players. More
City Mayors describes and explains the structures and workings of local government in Europe, The Americas, Asia, Australia and Africa. More
City Mayors profiles city leaders from around the world and questions them about their achievements, policies and aims. More
City Mayors deals with economic and investment issues affecting towns and cities. More
City Mayors reports on how business developments impact on cities and examines cooperation between cities and the private sector. More
City Mayors describes and explains financial issues affecting local government. More
City Mayors reports urban environmental developments and examines the challenges faced by cities worldwide. More
City Mayors reports on and discusses urban development issues in developed and developing countries. More
City Mayors reports on developments in urban society and behaviour and reviews relevant research. More
City Mayors deals with urban transport issues in developed and developing countries and features the world’s greatest metro systems. More
City Mayors examines education issues and policies affecting children and adults in urban areas. More
City Mayors investigates health issues affecting urban areas with an emphasis on health in cities in developing countries. More
City Mayors examines the contributions history and culture make to urban society and environment. More
City Mayors describes the history, architecture and politics of the greatest city halls in the world. More
City Mayors invites readers to write short stories about people in cities around the world. More
City Mayors questions those who govern the world’s cities and talks to men and women who contribute to urban society and environment. More
City Mayors profiles national and international organisations representing cities as well as those dealing with urban issues. More
City Mayors reports on major national and international sporting events and their impact on cities. More
City Mayors lists cities and city organisations, profiles individual mayors and provides information on hundreds of urban events. More
Currency movements main factor in deciding
ranking of most expensive cities in the world
A review of Mercer Consulting's Cost of Living Survey
7 July 2009: Tokyo has replaced Moscow as the most expensive city in the world for US expatriates according to the latest Cost of Living Survey from Mercer. Osaka is in second position, up nine places since last year, whereas Moscow is now in third place. Geneva climbs four places to fourth position and Hong Kong moves up one to reach fifth. Johannesburg has replaced Asunción in Paraguay as the least expensive city in the ranking. Similar research by ECA International puts Luanda (Angola) first, with Tokyo second. A report published by the Swiss Bank UBS says Oslo was the world's most expensive city, followed by Zurich and Copenhagen.The fundamental flaw of all cost surveys is that they convert local prices into US dollars, which means that any changes are as much the result of currency fluctuations as of price inflation. In surveys by ECA, UBS, Mercer and EIU the cost of living in cities outside the US dollar zone becomes more expensive if the dollar weakens against local currencies even when prices remain unchanged or indeed fall. A good example are cities in the United Kingdom. During the past two years the pound sterling has both weakened against the US dollar and the euro - from $2.1 to $1.6 and from €1.5 to €1.16. Therefore London and other British cities have become considerably less expensive for anyone travelling to the UK from Europe or the US, while at the same time the cost of many imported items, including gas and oil, increased due to the diminished purchasing power of the pound.
In Mercer’s 2009 survey, New York is used as the base city for the index and scores 100 points, all cities are compared against New York and currency movements are measured against the US dollar. Tokyo scores 143.7 points and is nearly three times as costly as Johannesburg with an index score of 49.6. The survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
The world's most expensive big cities
(The index is based on cost of living expressed in US dollars. Therefore, if the dollar weakens against the local currency of a city, the city becomes more expensive and moves up the index, even if prices expressed in local currency remain the same or even go down.)
|
Rank 2009
|
Rank 2008
|
City
|
Country
|
Score 2009
|
Score 2008
|
|
1
|
2
|
Tokyo | Japan |
143.7
|
127
|
|
2
|
11
|
Osaka | Japan |
119.2
|
110
|
|
3
|
1
|
Moscow | Russia |
115.4
|
142.4
|
|
4
|
8
|
Geneva | Switzerland |
109.2
|
115.8
|
|
5
|
6
|
Hong Kong | Hong Kong |
108.7
|
117.6
|
|
6
|
9
|
Zurich | Switzerland |
105.2
|
112.7
|
|
7
|
7
|
Copenhagen | Denmark |
105.0
|
117.2
|
|
8
|
22
|
New York City | USA |
100.0
|
100.0
|
|
9
|
20
|
Beijing | China |
99.6
|
101.9
|
|
10
|
13
|
Singapore | Singapore |
98.0
|
111.3
|
|
11
|
10
|
Milan | Italy |
96.9
|
98.3
|
|
12
|
24
|
Shanghai | China |
95.2
|
109.4
|
|
13
|
12
|
Paris | France |
95.1
|
118.3
|
|
14
|
4
|
Oslo | Norway |
94.2
|
79.3
|
|
15
|
89
|
Caracas | Venezuela |
93.3
|
125
|
|
16
|
3
|
London | UK |
92.7
|
105
|
|
17
|
14
|
Tel Aviv | Israel |
91.9
|
103.9
|
|
18
|
16
|
Rome | Italy |
91.2
|
101.1
|
|
19
|
21
|
Helsinki | Finland |
90.5
|
89.3
|
|
20
|
52
|
Dubai | UAE |
90.1
|
102.3
|
|
21
|
19
|
Vienna | Austria |
89.3
|
86.3
|
|
22
|
61
|
Shenzhen | China |
89.0
|
87.5
|
|
=23
|
55
|
Los Angeles | USA |
87.6
|
83.9
|
|
=23
|
70
|
Guangzhou | China |
87.6
|
103.9
|
|
25
|
16
|
Dublin | Ireland |
87.4
|
85.7
|
|
26
|
65
|
Abu Dhabi | UAE |
86.7
|
95.1
|
|
27
|
34
|
Douala | Cameroun |
86.1
|
97
|
|
28
|
25
|
Athens | Greece |
85.9
|
97
|
|
29
|
25
|
Amsterdam | Netherland |
85.7
|
90.6
|
|
30
|
45
|
Bratislava | Slovakia |
84.8
|
79.3
|
|
31
|
89
|
White Plains | USA |
84.7
|
95.9
|
|
32
|
30
|
Lagos | Nigeria |
84.6
|
82.2
|
|
33
|
74
|
Tehran | Iran |
84.1
|
89.6
|
|
=34
|
51
|
Abidjan | Ivory Coast |
82.5
|
92.2
|
|
=34
|
41
|
Dakar | Senegal |
82.5
|
81
|
|
=34
|
78
|
San Francisco | USA |
82.5
|
96.7
|
|
37
|
28
|
Madrid | Spain |
82.1
|
91.3
|
|
=38
|
43
|
Luxembourg | Luxembourg |
82.1
|
95.2
|
|
=38
|
31
|
Barcelona | Spain |
82.1
|
86.8
|
|
40
|
57
|
Algiers | Algeria |
81.7
|
81.4
|
|
=41
|
77
|
Honolulu | USA |
81.6
|
92.9
|
|
=41
|
39
|
Brussels | Belgium |
81.6
|
80.8
|
|
=41
|
80
|
Beirut | Lebanon |
81.6
|
90.7
|
|
44
|
44
|
Almaty | Kazakhstan |
81.5
|
82
|
|
45
|
75
|
Miami | USA |
81.4
|
103.1
|
|
46
|
18
|
St Petersburg | Russia |
81.3
|
93.1
|
|
47
|
37
|
Munich | Germany |
81.2
|
92.5
|
|
48
|
40
|
Frankfurt | Germany |
80.9
|
93
|
|
49
|
38
|
Berlin | Germany |
80.8
|
80.3
|
|
50
|
84
|
Chicago | USA |
80.7
|
117.7
|
Similar research by other organisations:
| ECA's most expensive cities | UBS' most expensive cities | EIU's most expensive cities |
Mercer's 2009 Cost of Living Survey
A significant reshuffle of cities can be observed in this year’s ranking, mainly due to considerable currency fluctuations worldwide. The majority of European cities moved down in the ranking with Warsaw experiencing the most dramatic change, plummeting 78 places from 35th to 113th. London and Oslo, both previously in the top 10, have dropped 13 and 10 places respectively. The same trend can be seen in Australia, New Zealand and India. Sydney has dropped 51 places from 15th to 66th and Mumbai has slipped down to 66th from 48th place.
Cities in the US, China, Japan and the Middle East have surged in the ranking. New York is a new entry in the top 10, jumping from 22nd to 8th place, and so is Beijing, now in 9th place, up from 20th in 2008. Japan now has two cities in the top 10 and Dubai has climbed 32 places to reach 20th.
Europe
In third place and with an index score of 115.4, Moscow remains the most expensive city in Europe for expatriates. However, a dramatic depreciation of the rouble against the US dollar has led to a sharp fall in the city’s index score compared to 2008 (142.4). Accommodation costs also started to decrease at the end of last year after a sharp increase in the first part of 2008. The next European cities in the ranking are Geneva and Zurich in fourth and sixth place, up from eight and ninth respectively. Copenhagen remains in seventh, and both Milan and Paris drop one place to 11th and 13th.
European cities have experienced some of this year’s steepest falls in the ranking, with Warsaw plummeting from 35th to 113th and Glasgow (129th place) and Birmingham (125th place) in the UK falling 60 and 59 places respectively. German and Spanish cities all fell between eight and 11 places, whereas cities in Sweden, Ukraine, Czech Republic, Romania and Hungary all fell between 36 and 48 places.
Oslo and London, both previously in the top 10, are now in 14th and 16th place respectively. “The decline of rental prices both in Oslo and London, coupled with the fall in the value of British pound and Norwegian krone against the US dollar, have caused these cities to plummet in the ranking,” said Ms Constantin-Métral.
The Middle East
While the vast majority of European cities have fallen in the ranking, most Middle Eastern cities have experienced a reverse trend. Both Dubai and Abu Dhabi have risen significantly in the ranking, moving from 52nd to 20th and 65th to 26th respectively. This is mainly due to the UAE dirham being fixed to the US dollar. Tel Aviv remains the most expensive city in the Middle East, although it is the only one in the region to move down in the ranking, from 14th to 17th.
Africa
Most African cities moved up in this year’s ranking, although their index scores have decreased. Cairo jumps a substantial 44 places to 57th as the Egyptian pound fared well against the US dollar. The sharp decrease of the South African rand against the US dollar has caused Johannesburg to slip to bottom position.
The US and Canada
Due to the strengthening of the US dollar, all cities in the US have experienced a rise in this year’s ranking. New York remains the highest ranking city in the region and has also joined the global top 10 list this year, jumping from 22nd to eighth place. Los Angeles is up 32 places to 23rd and Washington is up 41 places to 66th. Canadian cities have slipped down the index with its highest ranking city Toronto down 31 places to 85th. Ottawa drops 36 places to 121st and Montreal is now in 103rd place, down from 72nd in 2008.
Latin America
In 15th place and up 74 places from 2008, Caracas in Venezuela is the top ranking city in South America. Sao Paolo and Rio de Janeiro have experienced a reverse move, plummeting from 25th to 72nd and 31st to 73rd respectively, Similarly, Bogota has moved down from 87th to 120th place. Buenos Aires has climbed 26 to reach 112th place. “Although the Argentine peso has lost value against the US dollar, the high inflation rate observed on goods and services have caused Buenos Aires to rise in the rankings,” said Ms Constantin-Métral.
Asia
Tokyo moves up one place in the ranking to become the most expensive city for expatriates both in Asia and globally. The Japanese yen has strengthened considerably against the US dollar which also lifts Osaka into second place from 11th in 2008. Hong Kong follows in fifth place and Singapore has moved up three places to reach 10th. In 140th place, Karachi continues to be the least costly city in this region – up one place from last year.
The Indian rupee made a significant loss against the US dollar last year and all the Indian cities have moved down the ranking as a consequence. New Delhi moves from 55th to 65th place and Mumbai drops from 48th to 66th.
Chinese cities experienced the reverse effect as the Chinese renminbi performed relatively strongly compared to most other currencies. Beijing is in ninth place, having moved up 11 places to join the global top 10. Shanghai, Shenzhen and Guangzhou follow in 12th, 22nd and 23rd place respectively.
Australia and New Zealand
Cities in this region have taken a significant plunge in the ranking following a dramatic depreciation of the Australian and New Zealand dollars against the US dollar. Sydney remains the most expensive city for expatriates in this region but has dropped from 15th to 66th. Melbourne follows in 92nd, down from 36th. Auckland has moved down to 138th place from 78th and Wellington follows in 139th down from 93rd.
Methodology
The figures for Mercer’s cost of living and rental accommodation costs comparisons are based on a survey conducted in March 2009. The 2009 comparisons are based on a similar survey conducted in March 2008. The information is used by governments and major companies to protect the purchasing power of their employees when transferred abroad; rental accommodation costs data is used to assess local expatriate housing allowances. The choice of cities surveyed is based on the demand for corresponding data from companies and governmental organizations.
Related research
| THE MOST EXPENSIVE AND RICHEST CITIES IN THE WORLD UBS survey (August 2009): Most expensiv and richeste cities (Intro) | World's most expensive cities (table) | Richest cities by personal earnings (table) | Richest cities by purchasing power (table | The iPod index | ECA International survey (June 2009): Introduction | Table: World | Table: Europe | Table: Asia | Mercer survey (2009): Most expensive cities EIU survey (2009): Most expensive cities RICHEST CITIES BY GDP Introduction | 150 richest cities in 2005 | 150 richest cities in 2020 | Europe's richest cities | |
THE LARGEST CITIES IN THE WORLD AND THEIR MAYORS 2010
Introduction
Cities by size: 1 to 150 | 151 to 300 | 301 to 450 | 451 to 550 |
Cities in alphabetical order: A to D | E to L | M to R | S to Z |
Cities by countries: A to D | E to L | M to R | S to Z |
Mayor Monitor allows you to rate the performance of your mayor More
How good is
your mayor?
City Mayors provides Mayor Monitor (MM) to allow residents and non-residents to rate the performance of mayors from across the world as well as highlight their ‘best’ and ‘worst’ decisions. Mayor Monitor uses the widely understood one-to-ten rating system, where '1' signifies an extremely poor performance and '10' ‘an outstanding one. In addition to rating mayors’ performances, citizens are invited to highlight the best and worst decisions by city leaders.
Over time, Mayor Monitor will provide a valuable track record of mayors’ successes and failures as well as their popularity among residents and a wider public. The results will be published on the City Mayors website and updated monthly.
Please rate your mayor now.
The ratings will become a contributory factor of World Mayor 2010.