For the second year in a row, Mumbai has been named the most expensive city in India for expatriates. The financial capital of India has managed to maintain its top position, outpacing other major cities such as Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune.
According to a survey conducted by Mercer, a global consulting firm, rental costs in Mumbai have skyrocketed, experiencing an increase of 13 to 15 per cent in 2023 compared to the previous year. This surge marks the highest growth among all cities assessed in the survey.
While Mumbai takes the lead in terms of expenses, Bengaluru and New Delhi closely follow as the most costly cities for expats in India. However, Chennai, Hyderabad, Kolkata, and Pune offer a more affordable alternative, with lodging expenses nearly 50 per cent lower compared to Mumbai. Among these cities, Kolkata stands out as the most reasonable option for expatriate housing.
Globally, Hong Kong maintains its position as the most expensive city, with high costs across various aspects of living. It is followed by Zurich and Singapore, which also rank among the top costly destinations. On the other end of the spectrum, Havana, Cuba, emerges as the least expensive city, providing a more affordable option for expats. In Pakistan, Karachi and Islamabad are the least expensive cities.
In terms of its ranking among Asian cities, Mumbai dropped one spot to the 27th position. Despite the slight decline, it remains a significant destination, particularly for multinational corporations looking to establish operations abroad. Mumbai and Delhi also offer cost-effective locations compared to major Asian cities like Shanghai, Beijing, and Tokyo.
Mercer's survey assessed 227 cities across five continents, comparing more than 200 products, including accommodation, transportation, food, clothing, home goods, and entertainment. The upward trend in rental costs was observed across all Indian cities, with Mumbai experiencing the most substantial growth. Bangalore, New Delhi, Pune, Chennai, Hyderabad, and Kolkata also saw housing rents increase, albeit to a lesser extent.
Several factors contribute to the changing rankings of Indian cities. Currency instability and inflation in other countries play a role in reshaping the cost of living landscape. These fluctuations impact the overall affordability of cities and influence the rankings provided by Mercer.
When it comes to specific expenses, Kolkata and Pune offer the best value for basic household food items, making them more budget-friendly choices. On the other hand, Chennai has the highest pricing in this category. Alcohol prices witnessed a rise in Bangalore, Chennai, and Hyderabad. Personal care costs increased across all locations.
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