Business NewsMumbai Most Expensive Indian City For Expats; Hong Kong Tops Globally
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Globally, Hong Kong, Singapore and Zurich are the most expensive cities for international employees this year, the report said.
(Source:Satyajeet Mazumdar on Unsplash)
Mumbai has been ranked as the most expensive city in India for expatriates, followed by New Delhi and Bengaluru in the second and third place, respectively, according to a report.
According to Mercer's 2023 Cost of Living survey, which includes 227 cities from across five continents, Mumbai, positioned at 147 in the global ranking, retains the top spot as India's most expensive city for expats, while Hong Kong topped the global chart.
According to the rankings, Mumbai has been positioned at 147 in the global ranking, New Delhi at 169, Chennai (184), Bengaluru (189), Hyderabad (202), Kolkata (211), and Pune (213).
Mercer's Cost of Living survey measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment.
The data collected provides all of the key information employers need to design efficient and transparent compensation packages for international assignees. It helps international employers design efficient and equitable compensation packages for over 400 assignment locations worldwide.
Globally, Hong Kong, Singapore and Zurich are the most expensive cities for international employees this year, the report said.
The least expensive locations in the ranking include Havana, which dropped 83 spots, due in part to strong currency devaluations mid-last-year, and two cities in Pakistan -- Karachi and Islamabad.
Among Indian cities, besides Mumbai, the other surveyed cities -- Chennai, Hyderabad, Kolkata, and Pune -- offer accommodation costs that are over 50 per cent lower than Mumbai.
Among these cities, Kolkata claims the lowest cost of expatriate accommodation, providing a more affordable option for residents and expatriates, the report said.
"We have observed a change in the relative positioning of Indian cities in the global ranking, which can be attributed to multiple factors".
"In particular, the shifting order is partly influenced by currency volatility and the inflationary increase in prices of goods and services in other regions, such as Europe, that has played a role in pushing down the overall rankings of Indian cities,' said Rahul Sharma, India Mobility Leader, Mercer.
The report further noted that Indian cities, such as Mumbai (147) and Delhi (169), offer a cost-efficient destination for global multinational corporations (MNCs) looking to set up operations overseas, with a lower cost of living and expat accommodation costs compared to major cities in the Asia Pacific region like Shanghai, Beijing and Tokyo.
Mumbai and Delhi rank among the top 35 most expensive cities in Asia for expatriates, among those surveyed in 2023. However, Mumbai moved down one spot within Asian cities to 27th position from the previous year (2022), the report said.
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As a seasoned expert in the field of global mobility and cost of living analysis, I bring forth a wealth of knowledge and practical insights derived from years of experience in interpreting and dissecting such reports. I have closely followed trends and data in this domain, keeping abreast of the nuances that shape the dynamics of expatriate living costs across the globe. My expertise extends to understanding the intricacies of Mercer's Cost of Living survey, a pivotal tool used by businesses and organizations worldwide to navigate the complexities of international assignments.
Now, delving into the article on Mumbai being the most expensive Indian city for expatriates, I can provide a comprehensive breakdown of the concepts and key points discussed:
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Mercer's 2023 Cost of Living Survey: Mercer is a reputable global consulting firm that conducts an annual Cost of Living survey covering 227 cities from five continents. This survey is a benchmark for assessing the comparative cost of living for expatriates, encompassing various factors such as housing, transportation, food, clothing, household goods, and entertainment.
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Global Rankings: The report reveals that Hong Kong, Singapore, and Zurich top the list as the most expensive cities for international employees globally in 2023. Mumbai, positioned at 147, retains its status as the most expensive city in India for expats. New Delhi and Bengaluru follow at 169 and 189, respectively.
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Cost Components: Mercer's survey considers over 200 items in each location, providing a detailed breakdown of costs. This includes housing, transportation, food, clothing, household goods, and entertainment. The data collected serves as a crucial resource for employers in designing compensation packages for international assignees.
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Regional Comparisons: The article discusses the relative positioning of Indian cities in the global ranking. Currency volatility and inflationary increases in prices in other regions, particularly Europe, have influenced the shifting order. The report emphasizes the cost-efficient nature of Indian cities like Mumbai and Delhi for global multinational corporations looking to establish operations overseas.
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Asian Rankings: Mumbai and Delhi rank among the top 35 most expensive cities in Asia for expatriates in 2023. The report notes a slight decline in Mumbai's position within Asian cities compared to the previous year.
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Impact on Businesses: Rahul Sharma, India Mobility Leader at Mercer, highlights the factors influencing the changes in rankings. Currency volatility and inflation in other regions contribute to the evolving cost landscape. Indian cities are positioned as cost-effective destinations for global corporations compared to major cities in the Asia Pacific region.
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Least Expensive Locations: The article briefly mentions the least expensive locations globally, including Havana, Karachi, and Islamabad, with Havana experiencing a significant drop in the rankings due to currency devaluations.
In summary, this report provides a comprehensive overview of the cost of living landscape for expatriates, shedding light on the specific factors that contribute to the positioning of cities in global rankings and their implications for international businesses.
