The most expensive cities worldwide in 2022

ECA International, a global mobility firm, has unveiled its yearly ranking of the world’s priciest cities, with Hong Kong once again at the top.

The ranking is based on various factors, such as the cost of everyday essentials like milk and cooking oil, as well as rent, utilities, public transportation, and currency strength.

For the third consecutive year, Hong Kong holds the title of the world’s most expensive city in ECA’s index, which specifically evaluates costs for foreign workers and expats.

Asia claims the top spots

Asia can confidently be called the most expensive continent, with five cities – Hong Kong, Tokyo, Shanghai, Guangzhou, and Seoul – securing spots in the top 10.

Some analysts group the Middle East as part of Asia, which would bring Tel Aviv into the mix. In that case, Tel Aviv ranks sixth, increasing Asia’s share to six out of the top 10 cities.

Asia also boasts the fastest-growing city on the global list: Colombo, Sri Lanka’s capital, which surged 23 spots from 162 to 149.

Lee Quane, ECA’s regional director for Asia, discussed the rising presence of Chinese cities on the index.

“Most cities in mainland China have seen higher inflation rates than we’re accustomed to, but they still remain relatively lower than many other Asian cities,” Quane noted. “The key driver of their rise in the rankings has been the strength of the Chinese yuan against other major currencies.”

Hong Kong's highly competitive and overcrowded housing market played a significant role in its ranking as the world’s most expensive city.

The intense competition and limited housing space in Hong Kong helped secure its position as the world’s priciest city. Li Zhihua/China News Service/Getty Images

Cities falling down the rankings

Which cities have slipped in the rankings compared to previous years?

Paris, which has previously topped the ECA list, has fallen out of the top 30, while Madrid, Rome, and Brussels have also dropped in position.

“Almost every major city in the Eurozone saw a decline in the rankings this year, as the euro performed weaker than both the US dollar and the British pound over the past 12 months,” explains Quane.

External factors, such as political events and international conflicts, also have an impact. The ongoing war in Ukraine and the resulting sanctions led Moscow to rank 62nd, with St. Petersburg coming in at 147th.

Geneva, Switzerland, ranks as Europe’s most expensive city, placing third overall after Hong Kong and New York. Switzerland uses the Swiss franc rather than the euro.

The COVID-19 pandemic has undoubtedly affected global supply chains and other economic factors.

Other city rankings

ECA International is not the only organization ranking the world’s cities based on economic factors.

The Economist Intelligence Unit (EIU), based in London, publishes its Worldwide Cost of Living index each December. In 2021, Tel Aviv was named the most expensive city, with Paris and Singapore tying for second place.

Hong Kong ranked fifth, just behind Zurich. In 2020, Hong Kong, Zurich, and Paris were all tied for the top spot.

Both rankings consider the cost of everyday items such as groceries and fuel to determine their position. However, the EIU ties its figures to the US dollar, meaning economies like Hong Kong, which also ties to the US dollar, tend to rank higher.

Regardless of the ranking order, it’s clear that cities in Asia, Europe, and North America are significantly more expensive to live in compared to cities in Africa and South America.