Capitals Frequently Ranked as More Costly for Daily Living in 2025
Singapore Maintains Its Iron Grip on Global Rankings
The island city-state of Singapore has become a familiar face at the top of the world’s most expensive capital cities lists, and 2025 is no different. Singapore and Zurich are among the most expensive cities in 2025, according to cost of living indexes. Both cities have extremely high housing costs, expensive consumer goods, and strong currencies, making them costly for both residents and expatriates. The city-state’s position isn’t really shocking when you consider its unique challenges. Limited land and substantial demand drive up housing prices, and a car-centric permitting system means private transportation can cost a small fortune. Certificates of Entitlement can exceed S$100,000 (US$80,000), reflecting the state’s attempt to manage traffic congestion.
Hong Kong’s Property Market Remains Brutally Expensive
According to Mercer’s 2024 cost-of-living data, Hong Kong, Singapore and Zurich are currently the costliest cities for international workers. What makes Hong Kong particularly brutal for residents is its property market. Hong Kong regularly claims the top spot among the most expensive cities due to jaw-dropping property costs and import-reliant expenses. According to Demographia, median home prices hover around 16.7 times the median household income – a staggering ratio that makes finding an affordable flat a major challenge. The city’s reliance on imports for nearly everything also pushes up daily costs. Even everyday items like groceries or a quick lunch reflect the city’s extreme cost structure, especially since most goods are imported.
Zurich Commands Swiss Premium Pricing
The country’s financial capital is home to a number of the largest banking institutions in the world, thanks to a robust economic disposition, favourable regulatory framework and well-developed infrastructure. In recent times, the largely German-speaking city has garnered thousands of expat workers, significantly increasing demand for housing and driving rental prices to exorbitant highs. The Swiss financial hub doesn’t just attract money, it demands it from residents too. Another long-term resident of the top 10 list, this Swiss city rides high as a result of expensive housing prices and high transportation costs. Along with attracting some of the world’s richest people, Zurich also has some of the highest salaries in the world – perhaps this can be credited to all those big banks that are headquartered there.
Geneva’s Diplomatic Price Tag
Switzerland doesn’t just dominate with Zurich – Geneva secures its own spot among the world’s priciest capitals. Among the world’s most expensive cities are Hong Kong, Singapore, Zurich, Geneva, Basel, Bern, New York City, London, Nassau and Los Angeles. Geneva is considered one of the most expensive cities in the world, especially for expats, owing to its high standard of living and abundance of international diplomats. High salary also corresponds to high prices for household items. The presence of numerous UN organizations and international bodies drives up both demand and costs. Many global organizations – including the UN – call Geneva home, further boosting demand for housing and services in the city. Even though the cost of living can be daunting, Geneva offers top-tier education, efficient public transit, and an immaculate natural setting by Lake Geneva.
New York City Sets North American Standards
New York City is among the most expensive cities in the world to live in, as high housing demand and limited supply drive up prices. The Big Apple maintains its position as North America’s costliest capital region. New York City has become synonymous with big dreams and equally big price tags, landing it solidly among the most expensive cities. Manhattan’s median rent reaches approximately $4,500 monthly, sets the tone for the entire metropolitan area’s living costs. For perspective, renting a one-bedroom in central New York City costs an average of $4,107 in 2025. Meanwhile, average living expenses for a single person add another $1,700 monthly.
London Breaks Into European Elite
In addition to the four Swiss cities, London has joined the top 10 ranking in 8th place. The British capital has climbed significantly in recent rankings. Maintaining its position in the top 10 thanks to enormous demand for a tightly constrained supply of city-centre property, London is still Europe’s biggest financial centre, and the average house costs around 850,000 USD. New York was the highest-ranked U.S. city on the list, landing in seventh place, followed by London. The British capital bumped up to the eighth spot after coming in 17th last year. Brexit hasn’t exactly helped matters, and the city’s financial sector continues to draw high-earning professionals who push up housing costs.
Copenhagen Stands Out Among Nordic Capitals
It’s one of the priciest cities in Europe, ranking 22nd worldwide for cost of living (Mercer Cost of Living Survey, 2024). Denmark’s stylish capital has earned its reputation as one of Europe’s most expensive cities. Other expensive cities in the region include Copenhagen (11), Vienna (24), Paris (29) and Amsterdam (30). Copenhagen is often ranked among the most expensive cities in Europe, and for good reason. The cost of living in Copenhagen in 2025 is expected to be around DKK 15,600–23,900 per month (₹2.03L–₹3.11L), depending on your lifestyle (Numbeo, 2025). The city’s focus on sustainability and high-quality public services comes with a premium price tag. Copenhagen has a high environmental performance but great public service, which is expensive. The capital of Denmark has some of the most expensive properties for the wealthy and high-end consumer economy.
Bern Quietly Commands Swiss Prices
While Zurich and Geneva grab headlines, Switzerland’s actual capital Bern also ranks among the world’s most expensive cities. Bern, Switzerland’s fourth entrant in the top six, is a captivating city that has represented an intriguing option for expats and international workers for years. Found in the centre of the country, Bern walks the line between bustling European capital and small-town coziness, offering a rare respite from the traditionally economic-focused regions of Zurich and Geneva – and the statistics don’t lie. The city offers safety and quality of life that many expats crave. Importantly, Bern is considered one of the safest capitals in the world, with crime rates significantly lower than those of Basel, Solothurn, Zurich, and Geneva, however, the cost of living conditions are hefty. The wider metropolitan area remains expensive and the world-renowned University of Bern is among the most highly competitive in the world, surging demand for affordable housing.
Paris Maintains Its Expensive Romance
Paris is beautiful, historic, and culturally rich – but living here doesn’t come cheap. From tight apartments to high grocery bills, the French capital consistently ranks as one of the most expensive cities in Europe. The City of Light’s reputation comes with a hefty bill. Housing in central Paris is notoriously tight. Even older buildings without elevators or air conditioning go for premium prices if they’re located in desirable arrondissements. Dining culture: Eating out is part of Parisian life, but even casual meals at a brasserie can cost $25–$40 per person. The combination of limited housing space and strong tourist demand keeps prices elevated year-round.
Basel Rounds Out Swiss Domination
Although nine U.S. cities appear on the list of the world’s most expensive places to live, Switzerland is among the most expensive countries overall in 2025, with several of its cities – including Zurich, Geneva, Basel, and Bern – ranking among the world’s most costly. Basel represents yet another Swiss city commanding premium prices for daily living. Zurich joined Hong Kong and Singapore at the front of the ranking, joined by three other Swiss cities – Geneva, Basel, and Bern. The pharmaceutical and chemical industries that call Basel home bring high-earning workers who can afford the elevated costs. Zurich and Geneva, in particular, are renowned for their world-class infrastructure, healthcare, and education, which attract foreigners seeking a premium lifestyle, albeit at a steep cost. The high housing prices, food costs, and everyday expenses in these cities are largely driven by Switzerland’s strong economy and excellent living standards.
The Economic Forces Behind Capital City Costs
High demand, limited housing supply, and economic strength drive real estate costs up in these locations. The rising cost of living is driven by inflation, increasing housing demand, economic growth, and shifts in global trade. Several key factors consistently push capital cities to the top of expensive living rankings. According to the financial consultancy business, inflation and exchange-rate fluctuations directly affected the pay and savings of internationally mobile employees in 2024. This, coupled with heightened economic and geopolitical volatility, has ultimately increased the cost of living and pushed housing, utilities, and tax expenses sky-high. Cities Reliant on Imports See Higher Costs: Places like Singapore, Dubai, and Hong Kong import 80-90% of their food, making groceries substantially more expensive. In Singapore, for example, a simple grocery basket can cost 40% more than in New York due to import taxes and currency strength. Currency strength, limited land supply, and the presence of financial centers all contribute to these astronomical living costs.
The reality is that living in these prestigious capitals comes with a price that reflects their global importance and desirability. Whether it’s Singapore’s strategic location, Switzerland’s financial prowess, or New York’s endless opportunities, these cities command premium prices because they offer experiences and lifestyles that many consider worth the investment.
