Mercer’s annual cost of living report reveals that Hong Kong, Singapore and Zurich remain the most expensive cities in the world for international employees.
In contrast, Islamabad, Lagos and Abuja stand out for having the lowest costs of living. These rankings reflect the significant differences in global living costs, directly impacting the decisions of internationally mobile companies and employees.
Key Factors in the Global Economy
In 2024, the global economy continues to be influenced by several important factors. Inflation and exchange rate fluctuations affect the salaries and savings of international employees. In addition, economic and geopolitical volatility, along with local conflicts and emergencies, have generated additional costs in areas such as housing, utilities, local taxes and education, raising the cost of living in many cities.
Costs in High-Ranking Cities
In high-ranking cities such as Hong Kong, Singapore and Zurich, high living costs are mainly due to expensive real estate markets, high transportation costs and high prices for goods and services. In contrast, in cities such as Islamabad, Lagos and Abuja, lower living costs are influenced by currency depreciations, making these cities more affordable for international employees.
Most and Least Expensive Cities in 2024
The 10 most expensive cities for international employees in 2024 are Hong Kong, Singapore, Zurich, Geneva, Basel, Bern, New York, London, Nassau and Los Angeles.
At the other end of the spectrum, the 10 least expensive cities are Havana, Windhoek, Durban, Dushanbe, Blantyre, Karachi, Bishkek, Islamabad, Lagos and Abuja. These rankings highlight the wide variations in living costs between different regions and cities around the world.
Regional Analysis: Europe and the Middle East
In Europe, half of the most expensive cities are in Western Europe, with four located in Switzerland. In addition to London, other expensive European cities include Copenhagen, Vienna, Paris and Amsterdam. In the Middle East, Dubai has emerged as the most expensive city for international employees, followed by Tel Aviv, Abu Dhabi, Riyadh and Jeddah, reflecting a rise in living costs in this region.
South America and North America
In South America, Montevideo ranks as the most expensive city for international employees, followed by Buenos Aires and Sao Paulo. Santiago de Chile has seen a significant drop in the list, making it a more affordable option. In North America, New York remains the most expensive city, followed by Nassau, Los Angeles, Honolulu and San Francisco. Mexican cities Mexico City and Monterrey have seen significant increases in their positions in the ranking.
Regional Analysis: Africa and Asia
In Africa, the most expensive cities are Bangui, Djibouti and N’Djamena. On the other hand, the cheapest cities include Blantyre, Lagos and Abuja. In Asia, in addition to Hong Kong and Singapore, the most expensive cities include Shanghai, Beijing and Seoul, while the cheapest cities are Karachi, Bishkek and Islamabad. These rankings reflect regional variations in living costs.
Cost of Living in Montevideo
Montevideo, the capital of Uruguay, has become the most expensive city for international employees in South America, ranking 42nd in the world.
Factors such as rising housing prices, services and consumer goods have contributed to this position. Despite its high cost of living, Montevideo offers an outstanding quality of life, with a good health system, security and efficient public services, making it attractive for expatriates despite the high costs.
