Warsaw climbs global city ranking, but best living quality remains elusive

Warsaw has climbed in a new global ranking of cities, but the report suggests it is not yet among the best places to live. The study, compiled by Deutsche Bank using data from Numbeo, assesses quality of life and cost of living across 69 cities on six continents.

The report highlights a significant shift in global living costs, influenced by factors like currency fluctuations, post-pandemic inflation, housing prices, and geopolitical events. Traditional assumptions about which cities are expensive or affordable are increasingly being challenged.

Zurich and Geneva in Switzerland top the list of the most expensive cities. Tel Aviv, New York, and San Francisco also rank high. Tel Aviv, in particular, has seen a dramatic increase in its cost of living, attributed to a strong shekel, a booming tech and defense industry, and regional conflicts. It now leads globally in prices for meals, utilities, cars, clothing, gym memberships, and fast food.

In contrast, Japan has undergone a remarkable transformation. Once considered expensive, its cities, like Tokyo, are now among the most affordable in developed markets. The yen's depreciation against the dollar has drastically reduced the cost of living for those earning in foreign currencies. For instance, a meal for two in Tokyo is now cheaper than in Warsaw or Prague and represents only about 30% of the cost in New York. Renting a three-bedroom apartment in Tokyo is approximately 27% of the New York price.