This Indian City Emerges as India’s Most Expensive City To Live
This Indian City Emerges as India's Most Expensive City To Live.
Mercer’s 2024 Cost of Living Survey Highlights Rising Costs and Economic Resilience
June 17, 2024
Mumbai has been ranked as India’s most expensive city for expatriates, according to the 2024 Cost of Living survey by HR consultancy Mercer. Despite global economic challenges, Mumbai climbed 11 places since last year to rank 136th among 226 surveyed cities. This ranking continues Mumbai’s top position among India’s most expensive cities since the survey began in 2013.
Personal care, energy, utility, transportation costs, and housing rentals are notably high in Mumbai. The city, often referred to as the ‘city of dreams,’ has become increasingly costly, with real estate and daily goods prices soaring. Mercer’s survey indicated that personal care products, including cosmetics and toiletries, are most expensive in Mumbai, followed by Chennai.
Energy and utility costs are also highest in Mumbai, with Pune following closely.
The report also highlighted that transportation costs are highest in Mumbai, followed by Bengaluru, while alcohol and tobacco items are least expensive in Delhi and most expensive in Chennai. Mumbai’s overall cost of living is impacting both expatriates and local residents, making it a significant consideration for multinational organisations or Indian companies aiming to attract global talent.
Globally, Mumbai is now the 21st most expensive city for expats in Asia, while Delhi is at the 30th position. Other Indian cities also saw changes in their cost of living rankings: New Delhi is ranked 164th, Chennai 189th, Bengaluru 195th, Hyderabad 202nd, Pune 205th, and Kolkata 207th. Despite these increases, India’s cities still offer relative affordability, which remains a key advantage in attracting international professionals.
Amid rising costs, the Indian economy has demonstrated resilience, bolstered by domestic demand and a robust services sector. Factors such as employment growth, a rising middle class, and overall economic growth have positively influenced the cost of living in India. Mercer’s report emphasized that housing expenses are critical for attracting and retaining top talent, as they not only strain organizational budgets but also affect employees’ quality of life.
Mercer’s survey also placed Mumbai among the top cities worldwide in terms of cost. The top ten most expensive cities in the world according to the survey are Hong Kong, Singapore, Zurich, Geneva, Bern, New York City, London, Nassau, and Los Angeles.
As Mumbai and Delhi continue to rank high in living costs within India, the overall affordability and economic growth of Indian cities make the country an attractive destination for expatriates. However, the rising cost of living presents challenges that need to be addressed to maintain this appeal.
