African Capital Tops List of World's Most Expensive Cities for Expats

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Where is the world's most-expensive city for expatriates? It's not notoriously pricey Tokyo. It's not wallet-shrinking Sydney, Moscow or Oslo. And it's definitely not surprisingly cheap New York City. Rather, it's an African seaport you've probably never heard of: Luanda, Angola.

This finding from U.S. consulting firm Mercer underscores its annual survey's purpose: to assess the cost of living around the world so that multinational companies and governments can determine appropriate compensation allowances for their expatriate employees. After all, more than half of oil-rich Luanda's 5 million residents live below the poverty line.

"Despite being one of Africa's major oil producers, Angola is a relatively poor country, yet expensive for expatriates since imported goods can be costly," Barb Marder, senior partner and Mercer's global mobility practice leader, said. "In addition, finding secure living accommodations that meet the standards of expatriates can be challenging and quite costly."

Mercer noted in the survey that the difference in cost of various everyday items could be dramatic from country to country. The average cup of coffee, for example, costs about $1.54 in Managua, Nicaragua, while it costs $8.29 in Moscow. A fast-food hamburger meal in Kolkata, India, costs $3.62, compared to $13.49 in Caracas, Venezuela. A ticket to the cinema, meanwhile, can run between $5.91 in Johannesburg and up to $20.10 in London.

Cost of accommodation was another major factor Mercer looked at, and a one-month unfurnished luxury rental in Hong Kong topped the world at about $7,092 -- more than 20 times as much as in Karachi, Pakistan. Yet, it was Moscow that crept in just below Luanda as the second-most expensive city for expats, followed by Tokyo, Chad's capital city of N'djamena, and Singapore.

"Recent world events, including economic and political upheavals, which resulted in currency fluctuations, cost inflation for goods and services, and volatility in accommodation prices have impacted these cities making them expensive," Marder explained.

Mercer assessed a total of 214 cities across five continents for its 2013 survey, analyzing data from March 2012 to March 2013. Cities were then ranked by the price of housing, transport, food, entertainment and clothing, and ordered on the joint cost of 200 items compared to the benchmark, New York City.

"Given the increasing numbers of business travelers, global 'commuters' and longer-term expatriates, companies are keeping a close eye on the cost of living for international assignees in different cities around the world," Marder said, explaining the purpose of the study. "Organizations need to evaluate the impact of currency fluctuations, inflation, and political instability when sending employees on overseas assignments while ensuring they can facilitate the moves they need to drive the business results by offering fair and competitive compensation packages."

Nathalie Constantin-Métral, principal at Mercer with responsibility for compiling the survey ranking, said that, overall, cost of living went up across parts of Europe, while it went down in much of Asia. Japan dropped significantly from last year due to a weakening of the yen against the U.S. dollar.

In the Americas, meanwhile, South American cities were the most expensive for expatriates, while Canadian cities moved down in rankings due to a slight decrease of the Canadian dollar against the U.S. dollar. New York remained the most-expensive urban center in the U.S.

"Overall, U.S. cities either remained stable in the ranking or have slightly decreased due to the movement of the U.S. dollar against the majority of currencies worldwide," Constantin-Métral said. "Yet several cities, including New York, moved up in the ranking due to a rise in the rental accommodation market."

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kparadesi

This art cal very use full to me

July 29 2013 at 12:36 AM Report abuse rate up rate down Reply
JOSEPH

Who would want to relocate to a 3rd World country like Angola when there are much better places like Costa Rica and Panama.

July 28 2013 at 10:45 AM Report abuse rate up rate down Reply
Assange Patrick

any way it's meaningless to be more expensive when in real sense people cannot afford your items....5million people to be below the poverty line....Angola please change...

July 28 2013 at 9:45 AM Report abuse rate up rate down Reply
rfb112

Not quite sure why anyone would want to live in these expensive places unless they have more money than sense anyway. More than a few of them are places you couldn't pay me to live.

July 27 2013 at 2:41 PM Report abuse rate up rate down Reply
1 reply to rfb112's comment
bzh484

Remember that those writing the story are looking for the high cost factors.
Watch Home Buying on TV and you will see cities with very high prices. But lived in some with much lower price. Again, I think they look for the high numbers.

July 27 2013 at 5:18 PM Report abuse rate up rate down Reply
letmay8

Costly for safety and security reasons, you can get killed for being a nonAfro.

July 26 2013 at 10:30 PM Report abuse rate up rate down Reply
Steve

Those facts are all-ready well known to those who travel on business. The high prices in Africa etc is quite logical and expected. The other venues, likewise expected. Let\'s read about the least-costly capitals of the world; that would be more interesting and beneficial!

July 26 2013 at 8:17 PM Report abuse +2 rate up rate down Reply
adika3z

wrong pricey,
ripoff tag

July 26 2013 at 5:13 PM Report abuse -1 rate up rate down Reply