Montreal now cheaper for foreigners: study

It has become cheaper for foreigners to live in Montreal compared to other cities, according to a new study which now ranks Quebec's metropolis as the world's 123rd most expensive, down 28 spots from last year.

Vancouver (96) tops the list of most expensive Canadian cities to live in, surpassing Toronto (101) for the second year in a row, according to Mercer's 2014 Cost of Living Survey, which compares the cost of living for expatriates in 211 cities worldwide.

Canadian cities have dropped down the list significantly in this year's ranking compared with other places worldwide, because of the weakened Canadian dollar and slower pace of price increases compared with New York, the survey's base city.

Vancouver fell 32 places since last year, for a new ranking at 96, while Toronto stood at 101, down 33 spots and Calgary dropped to rank 125.

The annual survey ranks the most expensive cities for expatriates around the world, measuring the comparative cost of over 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.

Luanda in Angola is the world's most expensive city for the second year in a row, followed by N'Djamena, Chad.

European and Asian cities also continue to dominate as the costliest cities with Hong Kong in third place, followed by Singapore. Zurich jumped three places to rank fifth, followed by Geneva in sixth. Tokyo dropped four spots to rank seventh.

"Rankings in many regions were affected by recent world events, including economic and political upheavals, which resulted in currency fluctuations, cost inflation for goods and services, and volatility in accommodation prices," said Ed Hannibal, a partner for Mercer's mobility practice.

"While Luanda and N'Djamena are relatively inexpensive cities, they are quite costly for expatriates since imported goods come at a premium. In addition, finding secure living accommodations that meet the standards of expatriates can be challenging and quite costly as well."

Other cities appearing in the top 10 of Mercer's costliest cities for expatriates are Bern, Moscow, and Shanghai.

Tel Aviv continues to be the most expensive city in the Middle East for expatriates, followed by Beirut, Dubai and Abu Dhabi.

Karachi is the world's least expensive city for expatriates.

In the United States, cities have climbed in the ranking in part because of the relative stability of the US dollar against other major currencies.

A rise in the rental accommodation market pushed New York up eight places to rank 16, the highest-ranked city in the region.

In South America, Sao Paolo ranked as the costliest city, followed by Rio de Janeiro.

Here are the top 30 most expensive cities, according to the survey.

Rank 2014	Rank 2013	City	Country
1	1	Luanda	Angola
2	4	N'Djamena	Chad
3	6	Hong Kong	Hong Kong
4	5	Singapore	Singapore
5	8	Zurich	Switzerland
6	7	Geneva	Switzerland
7	3	Tokyo	Japan
8	9	Bern	Switzerland
9	2	Moscow	Russia
10	14	Shanghai	China

 

And for those seeking a bargain, here are the cheapest of the 211 surveyed.

 

201	209	Blantyre	Malawi
202	210	Tunis	Tunisia
203	187	Johannesburg	South Africa
204	211	La Paz	Bolivia
205	197	Cape Town	South Africa
205	206	Kolkata	India
207	212	Managua	Nicaragua
208	208	Islamabad	Pakistan
209	213	Bishkek	Kyrgyzstan
210	207	Windhoek	Namibia
211	214	Karachi	Pakistan

-With a file from The Canadian Press