Lisbon’s Ranking Amongst the World’s Most Expensive Cities

What is the position of Lisbon among the most expensive cities in the world to live in? This is what we are going to see in this article.

What determines whether a city is expensive? In Portugal, one of the factors that carries significant weight is housing, whether for purchase or rent. The high inflation and market fluctuations have greatly impacted the cost of living worldwide, influencing the choices of those who opt to work outside their home country.

Upon scrutinizing the cost of living across 227 cities globally, Mercer has determined that Hong Kong remains the most expensive city for expatriates in 2023, followed by Singapore and Zurich. Lisbon, on the other hand, ranks 117th in this list, marking a decline of 8 positions compared to the previous year.

For those who immigrate for work or possess the liberty to work remotely from any corner of the world, one of the pivotal considerations when selecting a destination is the balance between cost and quality of life. Within this context, Mercer’s Cost of Living City Ranking for 2023 holds the potential to provide assistance.

Notably, it is evident that five European cities feature among the top 10 most expensive places to reside: four of these are located in Switzerland (Zurich, Geneva, Basel, and Bern), while the fifth is Copenhagen, Denmark.

Among the European cities exhibiting a high cost of living, London (17th), Vienna (25th), Amsterdam (28th), and Prague (33rd) stand out. Prague has climbed 27 positions since the previous year, and Helsinki (34th) also appears on the list.

It is necessary to descend to the 117th position to find Lisbon, which rests in the middle of the ranking and has slid eight places since the last edition.

Upon examining the various components that contribute to the cost of living, it is evident that housing in the Portuguese capital has become substantially more expensive in comparison to other regions. Additionally, the Euro has depreciated against other currencies like the Dollar, rendering Lisbon “relatively more affordable,” he further asserts.

Globally, “cost is not the sole factor that influences the attractiveness of a location for workers and businesses. An equally important factor is the overall quality of life a city provides. On the other hand, risks and other negative aspects such as natural disasters, political and/or economic turmoil, high crime rates, inadequate infrastructure, and limited international connectivity can have the opposite effect,” as indicated in the study. The study examines various components of the cost of living, encompassing housing, transportation, food, clothing, household goods, and entertainment.

In this context, the cities that are “most successful” in attracting workers, digital nomads, and telecommuters are those that “combine flexible policies for mobile talent, high quality of life, and reasonable cost of living,” the study concludes.

About Mercer’s Cost of Living Survey

Mercer’s widely recognized survey is one of the world’s most comprehensive studies of its kind. It is designed to help multinational companies and governments determine compensation strategies for their international assignees.

Governments and major companies use data from this survey to protect the purchasing power of their employees when they are transferred abroad. For example, data on rental accommodation costs is used to assess local international assignees’ housing allowances. The choice of cities surveyed is based on demand for data from Mercer’s clients.

Stay tuned to MB Consulting for more information. If you want a quick contact from our team, use our contact us form and we will be happy to help you during your stay in Portugal.

Source:

idealista.pt
mercer.com