Europe’s Most Expensive Cities are Those that are not on the Euro

The most expensive city in Europe is Geneva (ranked 3 in the world), with a cost of living index of 124.49 (New York = 100), mainly as a result of being relatively expensive in most of the basket groups with the exceptions being alcohol & tobacco (ranked 194 in the world), education (ranked 167 in the world), and communication (ranked 108 in the world). Also contributing to the high cost of living, the Swiss Franc has strengthened by 8% in the past year and by 16% over the past 2 years.

Geneva is followed by Oslo (ranked 5 in the world), and Zurich (ranked 6 in the world). Oslo has a cost of living index of 122.05 (New York = 100). The Norwegian Kroner has strengthened by 16% against the Euro in the past year. Oslo is the most expensive city in the world for transport, and the second most expensive city for alcohol & tobacco. Oslo is also expensive for groceries as well as restaurants, meals out and hotels (ranked 5 in the world).

Copenhagen (ranked 7 in the world) is the fourth most expensive city in Europe and is particularly expensive for groceries (ranked 2 in the world).

Moscow (ranked 9 in the world) which had fallen in the cost of living rankings has shot back up 6th most expensive city in Europe. The Russian Rouble has strengthened 14% against the Euro in the past year.

The cheapest city in Europe is Sarajevo in Bosnia and Herzegovina (ranked 253 in the world) with a cost of living index of 64.72 (New York = 100).

Most expensive cities in Europe (Global rank in brackets)

1. Switzerland, Geneva (3)

2. Norway, Oslo (5)

3. Switzerland, Zurich (6)

4. Denmark, Copenhagen (7)

5. Liechtenstein, Vaduz (8)

6. Russia, Moscow (9)

7. France, Paris (10)

8. Monaco, Monaco (12)

9. United Kingdom, London (14)

10. Austria, Vienna (16)

The Middle East has experienced a drop in inflation in most cities over the past two years following a few years of relatively high inflation. The strong link of most regional currencies to the United States Dollar has resulted in many regional currencies strengthening against other major currencies. The United States Dollar has strengthened against the Euro by around 21% in the past two years making imports from Europe into the region cheaper.

Doha (ranked 69 in the world), with one of the highest economic growth rates in the world, is the most expensive city in the Middle East, followed by Abu Dhabi (ranked 73 in the world).

The largest change in cost of living has been in Dubai (ranked 131 in the world) with a cost of living index of 82.15 (New York = 100), currently the sixth most expensive city surveyed in the Middle East, having previously been ranked amongst the most expensive cities in the region. Household accommodation, which comprises 30% of the 13 basket groups based on expatriate expenditure norms, has fallen dramatically in Dubai in the past year, as a result of over-supply, given the impact of the financial crises.

The cheapest city surveyed in the Middle East (and cheapest in the world) is Sanaa in Yemen (ranked 282 in the world) with a cost of living index of 51.76, almost half that of New York which has a cost of living index of 100.

Most expensive cities in the Middle East (Global rank in brackets)

1. Qatar, Doha (69)

2. United Arab Emirates, Abu Dhabi (73)

3. Israel, Jerusalem (76)

4. Bahrain, Manama (81)

5. Saudi Arabia, Riyadh (123)

6. United Arab Emirates, Dubai (131)

7. Lebanon, Beirut (138)

8. Kuwait, Kuwait City (171)

9. Iran, Tehran (172)

10. Syria, Damascus (186)

While the perception is that Africa is a relatively poor and therefore inexpensive place to live, this is not the reality for expatriates on assignment in Africa. Cost of living calculations should be based on an expatriate life style and related expenses rather than on the life style and expenses incurred by local people. Expatriates living in African countries will find that local food, accommodation, and healthcare is relatively inexpensive, if they are prepared to adapt their lifestyle. However maintaining a luxurious lifestyle with imported food, “expatriate” accommodation, private healthcare, and entertainment/recreation is in many African countries very expensive. The cost of living for local people is usually not the same as it is for an expatriate in Africa.

Africa’s most expensive city for expatriates is Luanda in Angola (ranked 15 in the world) with a cost of living index of 106.17 (New York = 100). Luanda is particularly expensive for education, (ranked 3 in the world), accommodation (ranked 5 in the world), and healthcare (ranked 6 in the world). Luanda is rebuilding its infrastructure after years of war, which has contributed to making goods and services purchased by expatriates expensive, as a result of lack of availability, and the cost of bringing appropriate goods and services into the country.

Libreville in Gabon (ranked 20 in the world) is Africa’s second most expensive city, followed by Bangui in the Central African Republic (ranked 25 in the world) and Moroni in the Comores (ranked 27 in the world).

The cheapest city surveyed in Africa is Triploi in Libya (ranked 273 in the world).

Most expensive cities in Africa (Global rank in brackets)

1. Angola, Luanda (15)

2. Gabon, Libreville (20)

3. Central African Republic, Bangui (25)

4. Comores, Moroni (27)

5. Chad, N’Djamena (30)

6. Cameroon, Douala (52)

7. Mali, Bamako (56)

8. Congo, Brazzaville (60)

9. Cameroon, Yaounde (63)

10. Nigeria, Lagos (66)

Author Bio: Steven is Chief Instigator at Xpatulator.com a website that provides cost of living index information and calculates what you need to earn to compensate for cost of living, hardship, and exchange rate differences.

Category: Finances
Keywords: cost of living, Europe, Middle East, Africa, EMEA, index, rank