Tejarat News wrote: Various factors are effective in increasing or decreasing the cost of living in a city. Cities like Singapore and New York have become the most expensive cities in the world due to factors such as inflation and a strong currency.
Living in many cities known as expensive cities, including symbolic cities such as New York or Singapore, has many advantages, but it goes without saying that the use of facilities and facilities in these cities can be expensive.
Cities become expensive cities based on several factors such as high demand for housing, concentration of businesses and high-income industries, and high standard of living. In addition, factors such as taxes, transportation costs, and the availability of goods and services can affect the overall cost of living in international cities.
Visual Capitalist categorizes the most expensive and cheapest cities in the world based on data from the Economist Intelligence Unit.
What factors are effective in making the cities of the world more expensive?
If most of the residents of a city have challenges to create a shelter to live, provide food to eat and meet their goals, then that city is in the expensive category. But if the existing inflation is combined with a powerful currency unit, it will turn the city into one of the most expensive cities in the world.
New York and Singapore both ranked first as the most expensive cities in the world in 2022. They demoted the position of Tel Aviv, which ranked first in this category as the most expensive city in the world in 2021, to third place. Both of these cities have high inflation and a strong currency.
Hong Kong, as a city that has one of the most expensive real estate markets, is ranked fourth in this list. This year, the city of Los Angeles moved from its ninth position in 2021 to the fifth position of the most expensive cities in the world in 2022.
What is the reason why cities are cheap?
The continent of Asia continues to have the cheapest cities in the world in categories. After that, parts of North Africa and the Middle East are on the list of cheap cities in the world. While affordability sounds good on the surface, sitting at the bottom of the rankings isn’t necessarily a desirable position.
While the cost of living in some cities in these countries is low, this situation has come at the cost of a weakened currency, a weak economy, and in many cases, political and economic turmoil.
A decade of conflict in Syria has weakened the country’s lira, led to spiraling inflation and fuel shortages, and further disrupted the country’s economy. Therefore, its capital, Damascus, has maintained its position as the cheapest city in the world.
Tripoli, the capital of Libya in the 171st position and Tehran in the 170th position, respectively, are in the next ranks of this list as the least expensive and cheapest cities in the world, which originates from their weak economy.
Meanwhile, seven cities in Asia with the common denominator of high income inequality and low wages are among the cheapest cities in the world. These cities include three Indian cities, Tashkent in Uzbekistan, Almaty in Kazakhstan, Pakistan’s most populous city Karachi and Sri Lanka’s capital Colombo.