Ranking of the Most Expensive European Capitals in 2023
The compilation of the Cost of Living Index ranking is an important tool for comparing the cost of living in different cities. This index helps people understand how expensive or affordable living in a particular place can be. In this article, analysts from the website ultramodern-home.ru have compiled a ranking of the top 10 most expensive European capitals in 2023. When compiling the ranking, we took into account data from the numbeo website. Additionally, in the article, we calculated the average net salaries and the cost of renting a one-bedroom apartment in the city center.
Top 10 Most Expensive European Capitals in 2023
The main criterion used to compile the ranking is the city of New York. Its index is set at 100 for all cost of living indicators. This means that if the index of your city is, for example, 130, prices in your city are approximately 30% higher than in New York. The housing, food, and restaurant cost indexes are also calculated relative to New York. The cost of living index is a comprehensive indicator that includes expenses for food, restaurants, housing rentals, services, transportation, etc.
| Ranking | City | Cost of Living Index | Cost of Renting 1 Bedroom Apartment | Average Monthly Net Salary |
|---|---|---|---|---|
| 1 | Bern | 111.2 | 1,285 $ | 6,615 $ |
| 2 | Reykjavik | 90.8 | 1,710 $ | 3,853 $ |
| 3 | Oslo | 84.2 | 1,331 $ | 3,790 $ |
| 4 | Copenhagen | 83.1 | 1,860 $ | 3,810 $ |
| 5 | London | 82.8 | 2,654 $ | 4,140 $ |
| 6 | Paris | 77.6 | 1,390 $ | 3,100 $ |
| 7 | Dublin | 77.3 | 2,120 $ | 3,260 $ |
| 8 | Luxembourg | 71.6 | 1,733 $ | 4,787 $ |
| 9 | Berlin | 71.1 | 1,403 $ | 3,345 $ |
| 10 | Brussels | 70.8 | 1,067 $ | 3,211 $ |
Prices are indicated in US dollars.
Details about the top five cities:
First and foremost, it is worth noting that all five cities mentioned in the ranking are capitals of their respective countries. This itself can have an impact on the cost of living, as capitals usually serve as the economic and cultural centers of a country, attracting a large number of people and providing more opportunities for work, entertainment, and services.
In addition to this, the reasons for high prices of living in these cities may include:
- Switzerland, Iceland, Norway, and Denmark are globally recognized countries with a high standard of living. They are known for their stable economies, developed social infrastructure, and high level of safety. This attracts a large number of people, which can lead to increased demand for housing and services, thus potentially affecting the increase in prices.
- Bern, Reykjavik, Oslo, Copenhagen, and London are cities with high wages. High salaries can increase the demand for goods and services, which can also affect price growth.
- Some of these cities, such as Bern and London, are also financial and business centers. This means that these cities have a concentration of banks, financial companies, and offices, attracting professionals in these fields and potentially raising salary levels.
- The cost of real estate in these cities can also be very high. This can be attributed to limited space for construction, population growth, and high demand for property. The high cost of housing can be reflected in rental and purchasing prices, as well as the overall cost of living.
- Furthermore, tax policies in these countries can also play a role in shaping high prices of living. High taxes can lead to an increase in the cost of goods and services in order to compensate for the losses incurred by companies and the population.
Overall, the high cost of living in these cities is explained by their capital status, high wage levels, developed infrastructure and economy, as well as limited space and high real estate costs. This ranking will help people planning to move or simply interested in the difference in the cost of living in different cities make an informed choice.
