Mumbai remains India's most expensive city for expats: Survey

The current macro-economic landscape has spurred organisations to reassess their global mobility programmes with a focus on employee experience balanced with economics.

Mumbai continues to be the most expensive city in India for expats closely followed by New Delhi and Bengaluru, according to a cost of living survey by Mercer.

The other surveyed cities — Chennai, Hyderabad, Kolkata, and Pune — offer accommodation rentals that are over 50 percent lower than those in Mumbai. Among these cities, Kolkata offers the lowest cost of expatriate accommodation, providing a more affordable option for residents and expatriates, the survey found.

Survey criteria

Mercer’s cost of living survey for 2023 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 and Delhi rank among the top 35 most expensive cities in Asia for
expatriates but the country's financial hub has moved down one spot to 27th position from the previous year (2022).

Based on the most recent findings, rentals have shown an upward trend across all surveyed Indian cities, with Mumbai standing out with the most significant surge of 13-15 percent from 2022.

In Bengaluru, New Delhi, Pune and Chennai, rents have risen in a 5-7 percent range. Hyderabad and Kolkata experienced a modest increase of around 2-3 percent.

Rahul Sharma, India Mobility Leader, Mercer said there has been 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," Sharma said.

Budget-friendly Kolkata, Pune

The survey also found that the cost of essential food items, including fruits, vegetables, milk, and dairy products, rose across all cities in India, with Kolkata and Pune being the most budget-friendly options.

Bengaluru, Chennai, and Hyderabad also saw an increase in alcohol prices, with the booze priciest in Chennai. Personal care expenses have increased in all cities, with Mumbai being the most expensive and Kolkata offering more affordable options.

Utilities such as electricity and internet/broadband, too, got expensive in  2022 in most surveyed Indian cities. Delhi and Mumbai are the most expensive Indian cities to dine out, while Pune provides the most economical options followed by Bengaluru and Hyderabad.

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