Global Cost of Living Shifts: Tokyo Becomes More Affordable, Tel Aviv Rises in Expense Rankings
A new Deutsche Bank report analyzing the cost of living in 69 cities worldwide reveals significant changes in global price maps over the past decade. Factors such as currency fluctuations, wage increases, inflation, and local economic shifts have altered the relative expense rankings of many cities, invalidating assumptions held before the COVID-19 pandemic.
Tokyo, long considered one of the world's most expensive capitals, has become notably more affordable. The report highlights that prices for meals, entertainment, rent, and everyday goods in Tokyo are now significantly lower compared to leading cities in Europe and North America, partly due to the yen's depreciation in recent years. This shift means Japan is no longer necessarily a costly travel destination as many still believe.
Conversely, Tel Aviv has seen a sharp rise in average net wages, climbing to 12th place globally, a ten-place jump in just one year. Despite this wage growth, Tel Aviv remains among the most expensive cities worldwide, ranking first for McDonald's meal prices, third for affordable date costs, fourth for a couple's restaurant meal, and second for fuel, electricity, water, and car purchase prices.
Central European cities like Prague, Budapest, and Warsaw, once known for their affordability, have also become more expensive due to wage growth, currency strengthening, and inflation, narrowing the price gap with Western European cities. The report also notes notable price disparities, such as Japan being the cheapest country for purchasing an iPhone 17 Pro, while Turkey is the most expensive due to high taxes.
Additional findings include Zurich having the highest cappuccino prices, Milan the lowest by two-thirds, London the highest public transport costs, and Luxembourg offering free public transit. Luxembourg tops the quality of life rankings, followed by Copenhagen, Amsterdam, Vienna, and Munich. Zurich and Geneva remain the priciest cities overall, with New York holding the highest rental costs.
The full report is available in English through Deutsche Bank's publication.
