Mumbai still the most expensive Indian city for expats

India’s Silicon Valley, Bengaluru, which has a high population of expatriates driven by the information technology sector, is getting more reasonable on cost of living

Due to continuously surging food prices and leisure activities, Mumbai continues to be the most expensive city in India to live in for expatriates, ahead of global peers Washington and Melbourne.

However, India’s Silicon Valley, Bengaluru, which has a high population of expatriates driven by the information technology sector, is getting more reasonable on cost of living.

According to the Cost of Living Survey published by global personnel consultants Mercer, Bengaluru has fallen in the cost of living ranking. Driven significantly by a relative drop in prices on transportation - taxi fares, cost of automobile and auto parts, as well as running costs.

“Such studies help promote destinations among corporate houses.

"The cost of living not being very high is a sign of good investment. So, information technology companies are more bent towards Bengaluru, as they feel they can get a better office location, attract more talent and compensate employees more,” said Jaspal Singh, partner at Valoriser Consultants.

According to a Mercer spokesperson, other than transportation, the index for home services (domestic help hourly rate, laundry and dry cleaning) have come down for Bengaluru.

Other categories like domestic supplies, personal care and sports and leisure have also changed marginally in the city, added the spokesperson.

Mumbai at 55 continues to inch towards the Top 50 club and continues to be more expensive than Washington (56), Melbourne (58), Frankfurt (68), Buenos Aires (76), Stockholm (89) and Atlanta (95).

With prices of food items such as meat, butter and poultry rising significantly, the ‘Maximum City’ continues to be expensive for expatriates.

Photograph: Danish Siddiqui/Reuters