Mumbai, Delhi are India's most expensive cities; no Indian City in Global Top 100: Report

The ‘City of Dreams’ Mumbai remains to be out of reach for many due to its extremely high cost of living! Not just expensive real estate, even the cost of goods in Mumbai is notably high. 

According to Mercer’s 2024 Cost of Living survey, expenses for personal care, energy and utilities, transportation, and housing rentals in Mumbai are at an all time high. Mumbai has actually risen several positions in costliness, as has Delhi.

Internationally, Mumbai has ascended 11 positions to secure the 136th rank, whereas Delhi has moved up 4 places to the 164th position. Conversely, Chennai has slipped by five spots to 189th, Bengaluru has dropped six spots to 195th, Hyderabad maintains its position at 202nd, Pune has surged eight spots to 205th, and Kolkata has risen by four places to 207th.

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In 2023, Mumbai experienced a significant decline, dropping 20 places to 147th in the rankings. However, it has since rebounded, climbing to the 136th position. The report attributes Mumbai's increased cost of living to evolving economic factors. Delhi improved its ranking from 169th in 2023 to 164th, while Kolkata moved from 211th to 207th, and Pune rose from 215th to 205th. Conversely, Chennai dropped from 184th to 189th, Bengaluru from 189th to 195th, and Hyderabad remained stable at 202nd. These fluctuations highlight the dynamic nature of India's urban economies and their sensitivity to both global and local economic influences, according to the report.

Mumbai ranks 21st among the most expensive cities in Asia for expatriates, while Delhi holds the 30th position among the surveyed locations in the region.

"In the face of global economic challenges, India has remained largely resilient in our 2024 Cost of Living Survey. Despite Mumbai's rise in rankings, the overall affordability of Indian cities remains a key advantage for multinational organizations or Indian companies looking to attract global talent. Our thriving economy, fuelled by domestic demand and a robust services sector, offers a stable environment for global talent. As we navigate rising global housing costs and inflation, India's growth story and improving living standards position us as an attractive destination for international assignments,” said Rahul Sharma, India Mobility Leader at Mercer. 

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What factors add to the high cost of living in Indian cities?

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In Indian cities, Mumbai tops the list as the most expensive for personal care products such as cosmetics, toiletries, and beauty items, followed closely by Chennai. Conversely, Kolkata offers these products at the lowest prices. Mumbai also leads in energy and utility costs, with Pune following closely behind. In terms of transportation expenses, including vehicles, auto parts, and operational costs, Mumbai again ranks highest, with Bengaluru next in line.

In Delhi, housing rentals for expatriates saw the highest increase at 12-15%, while Mumbai experienced a rise of 6-8%, Bengaluru 3-6%, and Pune, Hyderabad, and Chennai 2-4%.

Milk, dairy products, bread, beverages, oils, fruits, and vegetables were found to be most economical in Kolkata, followed by Pune. Conversely, alcohol and tobacco items were least expensive in Delhi.

According to the Mercer report, housing costs are a critical factor in attracting and retaining top talent, impacting both organizational budgets and employees' quality of life. Global challenges like geopolitical conflicts and heightened inflation further complicate these dynamics for organizations managing global talent.

Despite global economic challenges, the Indian economy has demonstrated resilience compared to many major economies, driven by strong domestic demand and a robust services sector. Factors such as employment growth, a rising middle class, and overall economic expansion have contributed positively to the cost-of-living in India, as noted in the report.

Also Read: List Of Most Expensive Countries To Visit If You Pay With Indian Rupee

Which are the top 10 most expensive cities globally?

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Globally, the top 10 cities in terms of cost of living are:

1. Hong Kong

2. Singapore 

3. Zurich (Switzerland) 

4. Geneva (Switzerland)

5. Basel (Switzerland). 

6. Bern (Switzerland)

7. New York City (US)

8. London (UK)

9. Nassau (Bahamas)

10. Los Angeles (US).