28 June 2006

AMSTERDAM  â€” The Dutch capital has dropped from 24th to 41st place in the later Mercer Worldwide Cost of Living Survey.

Amsterdam is now on a par with the Zambian capital Lusaka and is cheaper than Ho Chi Minh City in Vietnam. But before you go and open the champagne bottle, the bad news is that Amsterdam's fluctuation in rank was due to currency exchange rates and rising costs in other cities.

"The euro has weakened against a number of currencies, for example the Canadian and US dollars, reducing the cost of living for expatriates in many European countries," Mercer spokeswoman Anna Krotova said.

It means that expats moving from USD-based countries will benefit from the improved exchange rate when they move to Amsterdam.

Mercer’s survey covers 144 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

Moscow, according to Mercer's analysis of costs in March 2006, replaced Tokyo as the most expensive city in the world. "Steep accommodation costs have contributed to the city's high ranking, as the recent property boom has driven up rental prices for expatriates," Krotova said.

The Japanese capital is now ranked 3rd overall behind Seoul.

The Russian capital is also the most expensive city in Europe. London is in 2nd place in this category and ranks 5th worldwide, down two places. Other costly European cities include Geneva (7th), Copenhagen (8th) and Zurich (9th).

Most Eastern European cities have dropped sharply, while US cities have risen due to the strength of the dollar.

Still, Mercer's comparison of prices in selected cities shows that expats in Amsterdam have to dig deep in their wallets for certain luxury and day-to-day items.

Mercer said that renting a luxury two bedroom unfurnished apartment costs on average GBP 1,700 (EUR 2,462) in London, but only GBP 651.

 1 2 Next >