World's most expensive city
London
has lost its title as the globe's priciest city for expats as Moscow swoops in
to take the lead, boasting not only the most expensive title, but also the
highest number of billionaires in any city in the world...
How things can Change in a decade. Rewind to 1998 and the city of Moscow was in total chaos. More than 100,000 Russians were forced to abandon their homes and take to the streets as banks and people's life savings, went bust.
Now, ten years on and the Russian capital has undergone a total turnaround and is now a very expensive place to live. The booming oil industry has beefed up Russia's fortunes and Moscow has been named the globe's most expensive city, ousting former number one London.
Moscow is home to 74 billionaires, which is the highest number living in any one city in the world.
Its three wealthiest citizens - Oleg Deripaska, Vladimir Lisin and Roman Abramovich - each possess fortunes in excess of £17 billion. Currently, a home in Eurasia in Moscow is on the market for £67.6 million, making it one of the most expensive homes in the world.
According to Mercer's 2008 Worldwide Cost of Living Survey, Moscow tops the pricey list with a score of 142.4, up six per cent from last year.
Mercer's survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
Tokyo is in second position climbing two places since last year, whereas London ranks third.
Oslo climbs six places to 4th place and is followed by Seoul in 5th. Asunción in Paraguay is the least expensive city in the ranking for the sixth year running.
Wild fluctuations in currency exchange rates has also made Seoul, China,
far cheaper for foreigners, while four Japanese cities are now in the top five.
ECA International, a human resources consultancy which tracks the cost of living in cities around the world, has attributed London's drop down the list to the weakening of the UK pound over the past few months.
Yvonne Traber, a Principal and Research Manager at Mercer, comments on the cost of living survey; "Current market conditions have led to the further weakening of the US dollar which, coupled with the strengthening of the Euro and many other currencies, has caused significant changes in this year's rankings.
"Although the traditionally expensive cities of Western Europe and Asia still feature in the top 20, cities in Eastern Europe, Brazil and India are creeping up the list. Conversely, some locations such as Stockholm and New York now appear less costly by comparison.
"Our research confirms the global trend in price increases for certain foodstuffs and petrol, though the rise is not consistent in all locations.
"This is partly balanced by decreasing prices for certain commodities such as electronic and electrical goods. We attribute this to cheaper imports from developing countries, especially China, and to advances in technology.
"Keeping on top of the changes in expatriate cost of living is essential so companies can ensure their employees are compensated fairly and at competitive rates when stationed abroad.
"In some cases, cost of living increases may be correlated to countries with a high rate of economic growth. Companies may assign high priority to expansion in these economies but may have to deal with inflationary pressures due to competition for expatriate-level housing and other services, as observed in our surveys," she added.
The top five cities in the Asia Pacific region are Tokyo, Japan (2nd), Seoul, South Korea (5th), Hong Kong, China (6th), Osaka, Japan (11th) and Singapore (13th).
The top five cities in the Americas are New York City, US (22nd), São Paulo, Brazil (25th), Rio de Janeiro, Brazil (31st), Toronto, Canada (54th) and Los Angeles, US (55th).
The top five cities in Europe, Middle East and Africa are Moscow, Russia (1st), London, UK (3rd), Oslo, Norway (4th), Copenhagen, Denmark (7th) and Geneva, Switzerland (8th)
Picture by John Leach