Mumbai retains top spot as India's most expensive city for expats: Mercer's 2023 Cost of Living Survey 

• Mumbai has been positioned at 147 in the global ranking, exhibiting the most substantial decline of 20 places since 2022
• According to the rankings, the cities listed in order are New Delhi (169), Chennai (184), Bengaluru (189), Hyderabad (202), Kolkata (211), and Pune (213)
• In comparison to the 2022 Cost of Living survey, Pune has emerged as the least expensive Indian city for expatriates, displacing Kolkata from its previous position

Mumbai, June 06, 2023: Mumbai ranks among the most expensive cities in India for accommodation rentals, closely followed by New Delhi and Bengaluru, revealed Mercer’s 2023 Cost of Living survey. The other surveyed cities—Chennai, Hyderabad, Kolkata, and Pune—offer accommodation costs that are over 50% lower than Mumbai. Among these cities, Kolkata claims the lowest cost of expatriate accommodation, providing a more affordable option for residents and expatriates.

The current macro-economic landscape has spurred organizations to reassess their global mobility programs with a focus on employee experience, balanced with economics. It is also implying a closer monitoring of specific factors such as currency fluctuations, cost inflation for goods and services, and instability of accommodation prices that are essential to determining the cost of expatriate packages for employees on international assignments.

Mercer’s Cost of Living survey is one of the most recognized and comprehensive of its kind, helping international employers design efficient and equitable compensation packages for over 400 assignment locations worldwide.

This year’s ranking includes 227 cities from across five continents. It measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment. The data collected provides all of the key information employers need to design efficient and transparent compensation packages for international assignees.

Mumbai & Delhi rank among the top 35 most expensive cities in Asia for expatriates, among those surveyed in 2023. However, Mumbai moves down one spot within Asian cities, to 27th position from previous year (2022).

Based on the most recent findings, rental prices have shown an upward trend across all surveyed Indian cities. Mumbai stands out with the most significant surge, witnessing an increase of 13-15% compared to 2022. In other surveyed cities such as Bangalore, New Delhi, Pune, and Chennai, housing rentals have seen a rise ranging from 5-7%. However, Hyderabad and Kolkata experienced comparatively modest increases, with rental prices going up by approximately 2-3%.

Rahul Sharma, India Mobility Leader, Mercer said, "We have observed a change in the relative positioning of Indian cities in the global ranking, which can be attributed to multiple factors. In particular, the shifting order is partly influenced by currency volatility and the inflationary increase in prices of goods and services in other regions, such as Europe, that has played a role in pushing down the overall rankings of Indian cities.

The latest survey findings reveal noteworthy cost trends across surveyed locations in India. The cost of essential food items at home, including fruits, vegetables, milk, and dairy products, has risen across all cities, with Kolkata and Pune being the most budget-friendly options. Meanwhile, Bangalore, Chennai, and Hyderabad have experienced an increase in alcohol prices, with Chennai having the highest prices in this category. Personal care expenses have increased in all cities, with Mumbai being the most expensive and Kolkata offering more affordable options.

Additionally, utilities such as electricity and internet/broadband have seen an upward trend in most surveyed Indian cities. Finally, Delhi and Mumbai have the highest costs for dining out, while Pune provides the most economical options, followed by Bangalore and Hyderabad.

However, Indian cities, such as Mumbai (147) and Delhi (169), offer a cost-efficient destination for global multinational corporations (MNCs) looking to set up operations overseas, with lower cost of living and expat accommodation costs compared to major cities in the Asia Pacific region like Shanghai, Beijing, and Tokyo.

Despite external challenges, the Indian economy remains highly resilient and is one of the fastest-growing markets globally. In March 2023, India's annual consumer inflation dropped to 5.66%, the lowest since December 2021. Vibrant financial activity, supported by government investments, and robust private consumption, especially among high-income earners, contribute to the positive economic landscape.

Mercer's widely recognized Cost of Living ranking is one of the world’s most comprehensive studies and is designed to help multinational companies and governments determine compensation strategies for their international assignees. New York City is used as the base city for all city ranking comparisons and currency movements are measured against the US dollar.

The survey includes 400+ cities throughout the world; this year’s ranking includes 227 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment. The data collected provides all of the key elements employers need to design efficient and transparent compensation packages for international assignees. Learn more here.

Media contact:

Adfactors PR: Snigdha Nair, mercer@adfactorspr.com