Hyderabad: In light of the ongoing changes in living conditions worldwide due to the effects of the COVID-19 pandemic, a comprehensive survey conducted recently revealed the most expensive cities in the world.
The cost of living is the initial standard which is taken into consideration when relocating to other cities for employment is brought into account.
The survey conducted by Mercer’s on the Cost of Living in 2023 also helps multinational companies and governments determine compensation strategies for their international assignees apart from delivering valuable inputs which are taken by employees as suggestions.
Amongst the most expensive cities in India, Hyderabad was ranked 5th while Delhi, Chennai and Bengaluru secured second, third and fourth place, respectively.
However, Mumbai topped the chart for its cost of living.
Internationally, Hyderabad stands at 202 of 277 while Mumbai ranked 147 among the most expensive cities in the world.
Hyderabad tops ‘Quality of living’ among cities in India
Hyderabad has secured its place on top when it comes to quality of living with Pune, Bengaluru, Mumbai, and Kolkota following its lead.
This year’s ranking includes 227 cities from across five continents with measurements of the comparative cost of more than 200 items.
Parameters including housing, transportation, food, clothing, household goods and entertainment have been taken into account while ranking.
The data obtained by the survey is useful for governments and major companies to protect the purchasing power of their employees when they are transferred abroad.
For example, data on rental accommodation costs is used to assess local international assignees’ housing allowances.
Cost of living crisis; Impact on employers and employees
High inflation and market fluctuations impact the cost of living across the world, impacting our purchasing power and standard of living.
Inflation and exchange-rate fluctuations directly impact the pay and savings of international employees.
According to the survey, the accommodation costs in Hyderabad, Kolkata, Chennai, Pune and Bengaluru are less in comparison to Mumbai while the cost of accommodation is the lowest in Kolkata.
The survey says that rental prices have surged all over Indian cities. However, the most significant surge was witnessed in Mumbai when compared to last year.
In Hyderabad and Kolkata, the rental rates saw a slight increase, while in Bangalore, New Delhi, Pune, and Chennai, the housing rentals surged moderately.
Hong Kong is the most expensive city in the world
Hong Kong, like last year, has once again secured its place on top in the Cost of Living City Ranking.
It is followed by Singapore, which jumped up six positions since last year, pushing Zurich to spot number three.
Havana dropped 83 spots since last year owing to currency devaluations mid-last-year, making it one of the least expensive alongside cities of Karachi and Islamabad, in Pakistan.
New York City is used as the base city for all city ranking comparisons. Currency movements are measured against the US dollar. The survey includes over 400 cities.
The figures used in Mercer’s cost of living and rental accommodation cost comparisons are derived from a survey conducted in March 2023.
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