The Israeli city of Tel Aviv is the most expensive city in the world to live in. This is shown by the Worldwide Cost of Living Index 2021, compiled by the British magazine The Economist.
The annual survey compares the costs of more than 200 goods and services in 173 major cities worldwide.
Paris and Singapore are together in second place, followed by Zurich and Hong Kong in fourth and fifth place. Last year, Paris, Zurich and Hong Kong were together in number one.
Amsterdam is in joint fortieth place in the ranking, making it one of the ten biggest fallers on the list. Last year, the capital was still in 32nd place.
It is the first time that Tel Aviv has topped the rankings. The increase is partly due to the strong position of the Israeli currency, the shekel, against the dollar. Transport and groceries have also become considerably more expensive in the coastal city compared to a year ago.
“Tel Aviv’s higher price is mainly due to its strong currency, which has been supported by Israel’s successful vaccination campaign against Covid-19,” the report said. Since then, the shekel has also been given a boost as the country is an attractive destination for foreign investors looking to invest in tech companies.
Israel’s Silicon Valley
Tel Aviv has seen a technology boom in recent years and has become the Silicon Valley of the country. This has pushed up the cost of living and widened the socioeconomic divide, The Wall Street Journal reported in September.
Property prices in Tel Aviv have risen, particularly in residential areas, although they have not been included in the ranking, according to The Economist.
The researchers say that the cost of living has increased in many cities due to higher fuel prices and supply chain disruptions caused by the corona crisis.
These are the 10 most expensive cities to live in, according to The Economist researchers:
- Tel Aviv
- Hong Kong
- New York
- Los Angeles