Mumbai, Delhi among world's most expensive cities for expats

The country's financial hub, Mumbai, and the National Capital New Delhi are among the world's 10 most expensive cities for expatriates to live in, says a survey by global HR consultancy Mercer.

According to the survey on housing costs and practices for employees sent on overseas assignments, Mumbai has emerged even more expensive than New York City in the United States and China's Capital Beijing.

Mumbai has been ranked as the world's fourth most expensive city in terms of rental property for expatriates, while New Delhi is eighth, the survey for February 2009 said.

Mumbai has moved up by one notch from its fifth position in the September 2008 survey, while New Delhi has fallen two places from its sixth place in the previous ranking.

Russia's Moscow has topped the list of world's most expensive cities and is followed by Tokyo (second), Hong Kong (third), Mumbai (fourth)and New York City (fifth) as the five most expensive cities across the globe for expats to live in.

The survey highlighted that Asian cities have dominated the list of the world's costliest locations for expats living there, with as many as six locations from the region being among the world's top 10.

"The world's housing markets have been sliding since 2008, and major currency fluctuations in the past few months have also had a strong impact on the comparative cost of expatriate housing," Mercer information product solutions India business leader Gangapriya Chakraverti said.

In today's market, it is imperative for firms to develop a global talent pool that support international business demands and housing remains one of the most sensitive issues in expatriate package negotiation process, Chakraverti added.

Further, Beijing has been ranked at the sixth position followed by Geneva (seventh), New Delhi (eighth), London (ninth) and Singapore (10th).

Interestingly, the survey stated that current slowdown has led companies towards a fundamental shift in the types of housing being offered in India.

Earlier, multinationals used to provide expat employees with luxurious housing options such as large farmhouses featuring world-class facilities. However, today, an increasing number are opting for luxury condominiums which provide the same kind of facilities but at a lower price.

As a result, expats are increasingly located in Gurgaon, Whitefield and Powai as opposed to more traditional locations such as Chanakyapuri, Indiranagar and Colaba. This has also resulted in more cultural integration between expats and the local population, the survey added.