Mumbai, Delhi among world's 10 costliest cities

[Screaming Skull]

Mumbai, Delhi among world's 10 costliest cities


April 2, 2009

The country's financial hub, Mumbai, and the National Capital New Delhi are among the world's 10 most expensive cities for expatriates to live in, says a survey by global HR consultancy Mercer. Here are the world's costliest cities to live in. . .

According to the survey on housing costs and practices for employees sent on overseas assignments, Mumbai has emerged even more expensive than New York City in the United States China's capital Beijing.


Moscow is the world's most expensive city to live in.

St Basil's Cathedral is pictured in Moscow's Red Square.

Mumbai has been ranked as the world's fourth most expensive city in terms of rental property for expatriates, while New Delhi is eighth, the survey for February 2009 said.

In second place -- in terms of most expensive city to live in -- is Tokyo.

The silhouette of Japan's highest Mt. Fuji is seen beyond Tokyo Tower in Tokyo.

Mumbai has moved up by one notch from its fifth position in the September 2008 survey, while New Delhi has fallen two places from its sixth place in the previous ranking.

Hong Kong is in the third place.

A general view of the Hong Kong's skyline is seen from the Peak in Hong Kong.

Russia's Moscow has topped the list of world's most expensive cities and is followed by Tokyo (second), Hong Kong (3rd), Mumbai (4th) and New York City (5th) as the five most expensive cities across the globe for expats to live in.

Mumbai, as stated earlier, is the world's 4th most expensive city to live in.

A man prays to the sea at the Gateway of India in Mumbai.

The survey highlighted that Asian cities have dominated the list of the world's costliest locations for expats living there, with as many as six locations from the region being among the world's top 10.

New York City is fifth most expensive.

The Chrysler Building is pictured on the skyline of Manhattan in New York.

"The world's housing markets have been sliding since 2008, and major currency fluctuations in the past few months have also had a strong impact on the comparative cost of expatriate housing," Mercer information product solutions India business leader Gangapriya Chakraverti said.

In sixth place is Beijing.

Vehicles pass over the Guomao Bridge on the 3rd Ring Road in Beijing.

In today's market, it is imperative for firms to develop a global talent pool that support international business demands and housing remains one of the most sensitive issues in expatriate package negotiation process, Chakraverti added.

Geneva is the world's seventh most expensive city to live in.

The buildings of the European headquarters of the United Nations in Geneva.

Further, Beijing has been ranked at the 6th position followed by Geneva (7th), New Delhi (9th), London (9th) and Singapore (10th).

New Delhi is the 8th most expensive city to live in.

People walk near the historic India Gate in New Delhi.

 

[Screaming Skull]

Interestingly, the survey stated that current slowdown has led companies towards a fundamental shift in the types of housing being offered in India.

London is the ninth most expensive city to live in.

The Canary Wharf financial district in East London.

Earlier, multinationals used to provide expat employees with luxurious housing options such as large farmhouses featuring world-class facilities. However, today, an increasing number are opting for luxury condominiums which provide the same kind of facilities but at a lower price.

Singapore is the 10th most expensive city to live in.

Water spouts out of the mouth of the Merlion statue in Singapore.

As a result, expats are increasingly located in Gurgaon, Whitefield and Powai as opposed to more traditional locations such as Chanakyapuri, Indiranagar and Colaba. This has also resulted in more cultural integration between expats and the local population, the survey added.

Shanghai is the 11th most expensive city to live in.

A general view shows Jinmao tower at the Pudong financial district in Shanghai.

About the study

Bangalore is the world's 29th most expensive city to live in.


From a survey of 300 cities across the world Mercer has produced a rental property index of the 50 most popular cities for expatriate assignments. The research provides multinational companies with financial information on rental prices for their expatriate employees in major commercial centres.

Data is based on typical rents for 1-4 bedroom apartments and 3-4 bedroom houses, furnished and unfurnished.

New York is used as the base city, with a score of 100 points. Moscow at the top of the ranking scores 168.30, while Mumbai at position 4 (105.10), New Delhi at 8 (96.60) and Bangalore at 29 (51.80) continue to receive interest and demand for expatriate rental property.

As the index is based on cost comparisons using the US dollar, currency exchange rates have an influence on the rankings.

A view of International Tech Park Bangalore in Bangalore.

 

[Omar1984]

So what do the millions of poor people in India do??? My question is not meant to be an insult and I dont plan to bring up poverty in India again...I am just curious what would the millions of poor people do there if their city in India is so expensive?

 

[sms]

So what do the millions of poor people in India do??? My question is not meant to be an insult and I dont plan to bring up poverty in India again...I am just curious what would the millions of poor people do there if their city in India is so expensive?

Omar, Pay attention to it's about ...10 most expensive cities for expatriates to live in

Delhi/ Mumbai are still full of poor people. They are dioing their bit and working to get better future for their next generations.

 

[Screaming Skull]

So what do the millions of poor people in India do??? My question is not meant to be an insult and I dont plan to bring up poverty in India again...I am just curious what would the millions of poor people do there if their city in India is so expensive?

Well sir if you didn't realize there are more than 2 cities in India.

 

[Omar1984]

^ Yes but Mumbai has its fair share of poor people and so does New Delhi.

 

[Screaming Skull]

^ Yes but Mumbai has its fair share of poor people and so does New Delhi.

Yeah that s true. But they are still surviving. aren't they? Moreover most of the poor in these cities are not the natives of these cities. Most of them have migrated to these cities in search of jobs as jobs and oppurtunities are plenty in these cities.

 

[notorious_eagle]

The cost of living is going up so fast, not only in the West but all around the world. I mean look at Karachi, Islamabad or Lahore. I mean i remember in the 90's you could buy a beautiful house in Lahore for 40 or 50 lakh rupees. Now, to buy that same house it will cost you atleast 2 crore rupees. Its just getting simply ridicilous, but the funny thing is that people in Pakistan are still buying these expensive houses.

 

[wtf]

^ Yes but Mumbai has its fair share of poor people and so does New Delhi.

Unfortunately, the poor tend to move in and live in slums. We have higher income in cities, but not good enough to pay for a house in Mumbai.
A cleaning woman in Mumbai can make Rs 5000 if she works 8-10 hours a day. If she has a husband who works as a labourer and makes another 5000 they have Rs10 K. Cost of living will be Approx Rs6,000 (not including transport) in Mumbai for a family of four. 4K won't get you much in Mumbai outside slums.

Note that there is still some savings living in slums. If you are rural, then your income will be much smaller and even after cheaper housing, the savings will be lower. So people still move from rural to urban areas.

You can get a flat on outskirts of Mumbai for 15 Lakh, but that will have an EMI of 15-thousands. Renting this will cost approx. Rs 7,500 a month. If you are single, then one can live in a hostel/shared acco. pretty reasonably on Rs 4,000. (You will get a room with a shared toilet).

 

[TopCat]

Expatriates usually live in the posh areas and tend to rent in five start or 3 start hotels as these are the only places where some sort of living condition ever found for foreigners.
Ask them to rent some house in slum and it will become one of the cheapest city in the world..

 

[wtf]

Expatriates usually live in the posh areas and tend to rent in five start or 3 start hotels as these are the only places where some sort of living condition ever found for foreigners.
Ask them to rent some house in slum and it will become one of the cheapest city in the world..

Not cheap even in slums. It is the nature of cities to be expensive. The food, the labour everything is expensive in Mumbai (except for transport -the metro is govt. owned and cheap).
My experience was that with Rs20,000 a month you could live well in Bangalore/Chennai .Delhi is a bit odd- some parts are cheap while places like Noida are crazily expensive. If you have to be comfortable in Mumbai you need atleast Rs 30,000 and to live well you need a lot more. I have heard at least an investment banker making Rs 5 million a year complain about how expensive Mumbai is.

 

[Evil Flare]

I am living in Karachi ... & with a Family of only 4 we need 40,000 Rs minimum ...

 

[Hasnain2009]

In karachi Rent for 120sqyard house is Rs 7000/= minimum, and in posh areas u will have to pay R.s 150,000 for 200sqyd bunglow!!

 

[Rumail]

btw...
wot determines the costs of these lands/flats

 

[third eye]

The cost of living is going up so fast, not only in the West but all around the world. I mean look at Karachi, Islamabad or Lahore. I mean i remember in the 90's you could buy a beautiful house in Lahore for 40 or 50 lakh rupees. Now, to buy that same house it will cost you atleast 2 crore rupees. Its just getting simply ridicilous, but the funny thing is that people in Pakistan are still buying these expensive houses.

This is the strangest part of it all..

Despite all the laments there are still enough takers for property in cities / metros !

These days there is virtually no diff in price between things we used to get from ' abroad' & at home.

By the way how much do essentials like petrol / diesel cost on your cities ? In Delhi /NCR petrol is Rs 44.5/ ltr while diesel is Rs 32 / ltr - both regular not Hi speed.