The cost of renting a place can vary dramatically depending on where you live. Cities across the world have shown interesting trends in terms of housing affordability, as rising demand, limited land availability and changing economic conditions continue to reshape rental and property markets.The findings have been mentioned in a recent report by the Deutsche Bank Research Institute, which analysed prices across 69 cities in six continents and sourced primarily from Numbeo’s crowdsourced database.Among several mentioned indices, the report compares rental prices in global cities based on the monthly rent for a three-bedroom apartment in the city centre.According to the report, four out of the ten most expensive rental cities are in the United States, while two are in Switzerland. Indian cities aren’t even in the top 50.
The top 10
Four American and two Swiss cities are among the most expensive for renting an apartment.
The report mentions New York as the most expensive city, with other American cities, namely San Francisco, Boston, and Los Angeles, at third, fourth, and sixth, respectively.Zurich in Switzerland has ranked as the second most expensive, while Geneva is tenth on the list.The top ten also include Singapore, which ranked fifth, and Hong Kong at seventh. Similarly, London and Sydney ranked eighth and ninth, respectively.
What about Indian cities?
Mumbai secured the top position among Indian cities despite ranking at 52 globally. Bengaluru was second, globally ranking at 67, followed by Delhi at 68.Additionally, regarding the cost per square meter to buy an apartment in the city centre, Mumbai ranks 44, Delhi at 65, and Bengaluru at 67.According to the report, Hong Kong remains the world’s most expensive property market, despite prices remaining around 10% below pre-Covid levels. Seoul, ranked third, is closing the gap as a technology boom drives demand in its limited supply market. Zurich, Singapore and Geneva complete the top five.According to the data, even the most expensive Indian cities are still cheaper than their global counterparts in terms of renting and purchasing accommodation.
Expense as a measure of quality of life?
It is important to note that the report’s broader data shows that housing costs are only one part of the cost-of-living equation, while salaries, purchasing power, transport, healthcare, safety and pollution also influence how affordable and liveable a city is.For instance, New York tops the global ranking for three-bedroom rents, but ranks only 46th among 69 cities in the report’s quality-of-life index. By contrast, Zurich ranks among the world’s most expensive rental markets but is ninth for quality of life. Geneva offers another example, ranking among the top 10 for both rental costs and quality of life. At the same time, Luxembourg ranks first for quality of life despite being among the world’s most expensive cities overall.The comparison shows that the absolute cost of renting a home cannot, by itself, determine how expensive or desirable a city is to live in.
