In March 2025, market research company Employment Conditions Abroad (ECA) International published a report ranking the world’s most expensive cities for foreign workers to live. The study analyzed accommodation data and consumer goods and services commonly purchased by expatriates across 207 cities in 120 different countries.
The findings revealed some surprising trends, with cities in Asia dominating the list and the cost of living being significantly impacted by global inflation, energy prices, and currency fluctuations. Let’s take a look at the top 10 most expensive cities for expats this year.
For the second consecutive year, Hong Kong topped the list as the most expensive city in the world for expatriates. A combination of a stronger currency, high prices for everyday items such as coffee, petrol, and tomatoes, and overall high living costs contributed to its rank. Despite inflation being less severe compared to other regions, Hong Kong’s strong currency, pegged to the US dollar, has kept the cost of living soaring.
Coming in second, New York City’s cost of living is largely driven by sky-high rent prices. In the past year, rent prices increased by 12%, contributing significantly to the city’s high rank. Despite fluctuations in the global economy, New York remains one of the most expensive cities in the world due to its thriving economy and high demand for housing.
Switzerland’s Geneva ranks third due to its high rent prices, utilities, and general cost of living. Geneva is a major financial hub, which drives demand for housing and services. The city’s position as a hub for international organizations and businesses also keeps living costs elevated, though the strong Swiss Franc adds to the financial burden for foreign workers.
In fourth place, London’s steep rent costs were the primary factor behind its high ranking. Rent prices increased by 20% in the past year, making it one of the most expensive cities in Europe. Additionally, London’s position as a global financial center keeps demand for living space high, pushing prices further up.
Tokyo fell to fifth place after a significant drop in the value of the yen. This has made the city more affordable for foreign workers paid in stronger currencies. However, high rent and living costs still contribute to its spot among the top five most expensive cities. The weakening yen, at a seven-year low against the euro and 20-year low against the US dollar, has made it easier for expatriates to stretch their salaries.
Tel Aviv ranks sixth, reflecting Israel’s status as an economic and technological powerhouse in the region. High demand for housing and rising prices in food, transport, and utilities contribute to its high cost of living. Despite these challenges, Tel Aviv continues to attract a steady stream of expatriates due to its vibrant economy.
Zurich, Switzerland’s financial and cultural capital, comes in seventh. Like Geneva, Zurich faces high accommodation costs and general expenses related to utilities, food, and transportation. The Swiss economy remains one of the strongest in Europe, but this strength is reflected in the high living costs, making Zurich one of the priciest destinations for expatriates.
Shanghai ranks eighth in the world and is now Asia’s third-most expensive city. The city’s rise in the rankings is attributed to the strong performance of the yuan and increased demand for housing. As China’s economic growth continues, so does the cost of living for expatriates in Shanghai, making it one of the priciest cities to live in.
Guangzhou, another Chinese city, takes the ninth spot. Like Shanghai, it has seen an increase in costs, driven by the yuan’s strong performance and rising living expenses. As one of China’s largest and most economically important cities, Guangzhou’s costs for foreign workers have climbed significantly.
Seoul rounds out the top 10. High living costs, particularly in housing and food, have kept Seoul among the most expensive cities for expatriates. The city’s position as a global technology hub continues to drive demand for housing, further pushing up costs for foreign workers.
The cost of living for expatriates has seen significant shifts in recent years, with many cities in Asia rising in the rankings. As global inflation, energy costs, and currency fluctuations continue to affect living expenses, these cities remain some of the most expensive places to live in the world. Whether you’re considering relocating for work or planning your next move, understanding the cost of living in different locations can help you make an informed decision.
At Private Client Consultancy, we work with clients across Europe to navigate the challenges of inflation and cost-of-living increases. If you have any questions about how we can help you protect yourself from financial pressures, contact us today.
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