World’s most expensive cities – realestate.com.au

New research conducted by The Economist Intelligence Unit (EIU) has revealed the top 20 most expensive cities to live in throughout 2021.
With the world still reeling from COVID-19 and supply chain blockages pushing up the cost of living in the biggest cities across the globe, many of the list’s cities have experienced rapid change.
The Worldwide Cost of Living Index looked at the price of groceries and transport when factoring in how affordable, or unaffordable, a city was.
Cities with currencies that are stronger against the US dollar were likely to appear higher in the rankings, which was dominated by European and developed Asian markets.
On average, prices for the goods and services covered by the index have risen by 3.5 per cent annually in local-currency terms, compared with an increase of just 1.9 per cent this time last year.
As 2022 approaches, the research authors expect to see the cost of living rise further in many cities as wages increase in many sectors.

Here is the list of the world’s most expensive cities to live in 2021:
#19 (tie): Shanghai, China

With China forecast to become the world’s biggest economy by 2028,it might be surprising to see Shanghaiso low on the list. After all, it is the country’s biggest city and a global financial hub.With a booming commercial hub, it might jump up to take the top spot on next year’s list.

#19 (tie): Frankfurt, Germany

A skyline view of Frankfurt Germany.

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Frankfurt is a major financial hub that is home to the European Central Bank. Germany enjoys a fantastic healthcare system and free education – this has increased the cost of living within the country.

#19 (tie) Dublin, Ireland

Around 40 per cent of the country’s population resides in the Greater Dublin Area.

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Dublin is the capital of Ireland, located on the east coast at the mouth of the River Liffey. One of the factors influencing Dublin’s ranking is the cost of rental accommodation which has been driven by high demand and supply constraints.

#17 (tie) London, UK

General view of the British Parliament and the Thames in London

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London has continued to climb the rankings of the world’s most expensive cities as the cost of living within the capital continues to soar. The city has experienced price growth for household goods, personal care and recreational activities.

#17 (tie) Helsinki, Finland

A skyline view of Helsinki Finland.

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Helsinki is the capital and most populated city of Finland. Its sea-faring landscape, diverse architecture and Nordic cuisine all make it an attractive place for tourists and people who wish to live there.

#16 Melbourne, Australia

A man runs while his son cycles around Albert Park Lake in Melbourne

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The long-term rise in the cost of living in Australia has cemented both Melbourne and Sydney as expensive cities compared to the rest of the globe. High house prices are also a sign that people looking to buy in the Melbourne market may require a bigger wallet.

#14 (tie) Sydney, Australia

The Sydney skyline seen from Dudley Page Reserve, Sydney.

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Sydney slightly edges out Melbourne as the most expensive city to live in Australia. Factors such as the cost of moving, rental prices, house prices, living costs, transportation and telecommunications all make the Harbour City tricky to enter from a foreign market. If a person can afford to pay more for education facilities, healthcare and look for the work opportunities unique to Sydney, it makes it all worthwhile.

#14 (tie) Vienna, Austria

An exterior view of the Vienna Stock Exchange.

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Vienna lies in Austria’s east on the Danube River. With about 2.6 million inhabitants within the metropolitan area, the city is known for its Imperial Palaces and its artistic legacy including Mozart and Beethoven.

#13 Tokyo, Japan

A view of Mt. Fuji and the Tokyo skyline.

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From its neon-lit skyscrapers to its historic temples, Japan’s busy capital city of Tokyo has a lot to offer residents and potential buyers. It is expensive because it is the political and economic centre of the country, housing over 37 million residents in 2018.
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#12 Seoul, South Korea

Seoul, South Korea city night-time skyline.

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Seoul is a huge metropolis where modern skyscrapers and high-tech subways meet Buddhist temples, palaces and street markets. Housing costs and security deposits are often listed as common reasons why Seoul ranks highly on the list of world’s most expensive cities.
#11 Oslo, Norway

Oslo, the capital of Norway, sits on the country’s southern coast.

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Oslo, and Norway generally, is so expensive because it has a high number of workers which produce products and services within the city. Interestingly, Norway ranked second in the World Happiness Index which indicates the high cost of living hasn’t impacted their way of life.
#10 Osaka, Japan

The world famous Dotonbori Canal in Osaka.

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Osaka is a large port city and commercial centre on the Japanese island of Honshu, known for its modern architecture, nightlife and healthy street food. It is an expensive city due to it’s ultra high-end properties and hotels.

#09 Los Angeles, California

The Hollywood sign overlooking Los Angeles.

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The biggest factor that makes living in Los Angeles expensive is the high housing cost. Rent is higher compared to the rest of the country, and there are competing low vacancy rates and high demand which also puts it high on the list.

#08 Copenhagen, Denmark

Nyhavn in Copenhagen, Denmark

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The Danish capital, which pegs its currency to the euro, owes its place high on the list to “relatively high transport, recreation and personal care costs”. The appreciation, devaluation and inflation all had an impact on the currency and Denmark at large.

#07 Geneva, Switzerland

Panoramic view of city of Geneva, the Leman Lake and the Water Jet, in Switzerland

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Home to the headquarters of Europe’s United Nations and the Red Cross, Geneva is a global hub for diplomacy and banking. The costs of living are very high within the city, making it one of the most expensive in the world.
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#06 New York City, New York

The Manhattan skyline seen from a Brooklyn neighbourhood in New York City.

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Because of people’s desire to live and work within the city, New York is one of the most expensive places to live in the world.
#05 Hong Kong

Central District – Hong Kong.

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Hong Kong was at the top of the list in 2020, due to its expensive real estate and high living costs. It is also home to the highest number of billionaires in Asia.

#04 Zurich, Switzerland

Aerial view of Zurich city centre with famous Fraumunster and Sankt Peter Churches and river Limmat at Lake Zurich seen from Grossmunster Church.

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The city of Zurich is a global centre for banking and finance in northern Switzerland. It is known as one of the most expensive cities in the world due to the costs of transportation and accommodation.

#02 (tie) Singapore

Singapore skyline at dawn, showing the Marina Bay Sands and the Flyer.

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Singapore’s land is a prized commodity. As a result of a growing population, the demand for property has been increasing, yet the supply is limited, causing property and rental prices to go up.

#02 (tie) Paris, France

The Eiffel tower at night seen from the Trocadero square in Paris, France.

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Paris is one of the most visited cities in the world. It’s also one of the most expensive, driven by high real estate prices that feed through to retail prices.

#01 Tel Aviv, Israel

Tel Aviv is the world’s most expensive city to live in as soaring inflation has pushed up living costs.

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The Israeli city of Tel Aviv topped the rankings, over taking last year’s leader Paris. The sharp rise can be attributed to increases in grocery and transportation as well as the strength of the Israeli shekel against the US dollar.
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