Each year, Mercer, the consultancy focused on global economics, publishes its list of the most expensive cities in the world. The index lists 226 cities in the world in order, measuring how ‘expensive’ each one is by comparing the costs of more than 200 items in each location, including transport, food, clothing, household goods and entertainment. Mercer says “the comprehensive ranking serves as a valuable compass, providing guidance through the intricate landscape of living expenses in cities worldwide”. At the other end of the Mercer list, the cities that ranked the lowest for living costs last year are Islamabad, Lagos and Abuja.
Mercer’s list of the most expensive cities in the world is aimed at companies with employees who are assigned internationally and it includes four Swiss cities (Zurich, Geneva, Basel and Bern). There are other similar lists, including one by The EIU (Economist Intelligence Unit), which publishes a worldwide cost of living survey naming its most expensive cities in the world each year. And there’s another, by Numbeo, which focuses on the prices of consumer goods such as food, restaurants, and transportation, but not housing. Below, we’ve combined our findings to make a list of the 10 most expensive cities in the world, which happen to make wonderful luxury travel destinations.
1. Singapore
Poised at the top of both lists, there is no denying this luxury paradise’s position as one of the most expensive cities in the world. Singapore has pizzazz in abundance – even its botanical garden is described by Lonely Planet as “a S$1 billion, 101-hectare fantasy land of space-age biodomes, high-tech Supertrees and whimsical sculptures”. The soothing Mandarin Oriental overlooks the Marina Bay Sands development – the crown jewel of the skyline, and the symbol of modern Singapore.
2. Hong Kong
This city wears its luxury credentials glamorously, via an iconic skyline, glittering harbour and spectacular restaurant scene. But there are lush green peaks all around, too, offering panoramic views, Hong Kong camellias and sightings of spoon-billed sandpipers. Stay at the Peninsula to absorb some old-world magic, right on the Kowloon waterfront, and dine at Wing, Vicky Cheng’s rule-free fine dining establishment, which celebrates the eight great Chinese cuisines to dazzling effect.
3. Zurich
Another long-term resident of the top 10 list, this Swiss city rides high as a result of expensive housing prices and high transportation costs. Our 10-day Majestic Switzerland journey begins and ends in Zurich, where we stay at the stunning art deco AMERON Zürich Bellerive au Lac on the shore of Lake Zurich, a short walk from the opera house.
4. Geneva
On the same captivating Switzerland journey, which sweeps round the country with a stint on the Glacier Express, we pause in Geneva for a stay at the uniquely grand but intimate Hotel d’Angleterre, on the shores of the lake. It’s a sumptuous address – lots of dark wood, soothing tones, rich fabrics and imposing drapery. The lake views from the restaurant are exquisite, making for a meal perfectly befitting one of the most expensive cities in the world.
5. Copenhagen
Number 8 on the EIU list, Denmark’s impossibly cool capital is well documented as an expensive destination to while away a weekend. It’s worth every penny. Our Timeless Scandinavia journey combines a divine mix of fjords, scenic railways, countryside abodes and dazzling cities, starting in Copenhagen. Our chosen city lodgings are the epitome of Scandi minimalism: 71 Nyhavn is made up of restored canalside warehouse buildings, originally built in the early 1800s. We dine at the Michelin-star Høst – on the best Nordic ingredients, meticulously assembled.
6. Paris
Naturalement, some of the world’s most fabulous vacations are taken in Paris. On our Ultimate France journey we luxuriate in Paris last of all, so you can also extend your trip and linger longer. We stay at the Hotel Napoleon, a romantic address in the city’s heart, a short walk from the Arc de Triomphe. At the very end, our guests reminisce over dinner on the Eiffel Tower, potentially the most alluring dining destination in the world.
7. New York City
We flock to the Big Apple to shop widely, dine opulently and sleep soundly in some of the world’s most exquisite boudoirs, amid the unmistakable buzz of one of the most expensive cities in the world. Our current hotel pick for sheer grandiosity is the Fifth Avenue Hotel, once part of the estate of a 19th century socialite, sensationally restored with a jewel box palette, elaborate wallpapers, ornate paneling and oysters à la pomme at Café Carmellini.
8. London
Maintaining its position in the top 10 thanks to enormous demand for a tightly constrained supply of city-centre property, London is still Europe’s biggest financial centre, and the average house costs around 850,000 USD. On our journey through the regal glory of Great Britain, we begin in London – very centrally – across the road from Buckingham Palace. The Rubens at the Palace is a riot of lavish Englishness, with four poster beds, doormen in tailcoats and afternoon tea.
9. Nassau
The high cost of living in Nassau is due to its status as a tourist destination and financial hub, and because of high demand for limited housing from both locals and expatriates. Modern Nassau is all high-end fashion designers, extremely fine dining and superyachts – all with that turquoise backdrop. Soak it up at the Rosewood Baha Mar, a haven of exclusivity, with a golf course, French restaurant and soothing, richly decorated residences, opening on to the powder white sands of Cable Beach.
10. Los Angeles
LA has higher than average costs for housing, taxes, food, transport, health care, and utilities. The most expensive neighbourhood is Bel-Air. If you’re in town, only the rose-coloured Hotel Bel-Air will do, set within 18 acres of bougainvillea, ficus, orange blossom and fern. This classic Hollywood hideaway makes guests feel like A-listers, and is a peaceful antidote to the traffic.
