Prices have increased in cities around the world, resulting in a higher cost of living than ever. In fact, the average value of goods and facilities increased by 7. 4% year-on-year, according to the recently published Global Cost of Living Report 2023. through the Economist Intelligence Unit (EIU). This is a huge jump from the five-year average of 2. 9%.
But not everywhere has been impacted equally. The report ranks 173 cities based on prices of food, clothing, rent and transportation and other costs of 200+ goods and services. When compared to the report’s global index, some cities remain relatively low-cost compared to places like Singapore and Zurich, both of which tied for the most expensive place to live. Many cities in Asia, for instance, became relatively less expensive, with 46 out of 58 cities slipping down the rankings due to a more sluggish economic recovery.
Some cities also remain surprisingly affordable compared to their more-costly neighbours. For travellers or digital nomads, these places can offer the same big-city amenities at a much lower cost of living. We spoke to residents and recent travellers to the cities that ranked as less expensive on the annual EIU index when compared to their continent’s other cities, and heard their advice on what makes living more affordable – and how to make the travel cash go even further.
Lisbon is a hot spot due to its affordability and virtual nomad visa (Alexander Spatari/Getty Images)
Lisbon, Portugal
Lisbon, the cheapest city in Western Europe according to the EIU ranking, has become a hotspot for virtual nomads in recent years, notably thanks to its 2022 virtual nomad visa, which allows freelancers and remote staff to stay for a year or two. Its relatively lower prices (56% less than other Western European cities, according to price site Expatistan) also make it an attractive destination for tourists.
“Lisbon was one of the most sensible cities on my bucket list and this summer, after all, I got to see this colorful destination with my own eyes,” said Mercedes Zach of Asaptickets. “Not only is it beautiful, cozy and fun, but there are also a lot of affordable things to do. “
Zach recommends exploring the bohemian community of Bairro Alto for street art, city views, and sunset get-togethers with locals. He also enjoyed exploring the free central park Parque Eduardo VII, which houses stoves (greenhouses) showcasing exotic plants from Portugal and the tropics. . The Roman Theatre Museum offers a glimpse into the city’s Roman past, with ruins of the theatre preserved.
To experience authentic fado music, Zach suggests heading to the affordable Tasca do Chico. “The old, cosy tavern is adorned with photos, posters and clippings of the soulful fado singers and performers and the atmosphere there is genuinely authentic,” she said. “It also offers amazing live fado shows without any entrance fees.” She recommends going on Mondays or Wednesdays, when there’s local singers and fewer crowds.
Visitors can be invited to tango with locals at a milonga evening in Buenos Aires (James Strachan/Getty Images)
Buenos Aires, Argentina
With the worst inflation rates globally and currency valuations plummeting, Buenos Aires is among the top 10 lagging cities in the index, with a score of 163 out of 173. Currency destabilization has strengthened the U. S. dollar, which citizens are looking for, more than ever. as a way to keep your savings. Known as the blue dollar or “blue dollar rate,” this exchange rate is exploited by travelers on the floor via Western Union.
Coins are selling a lot more here than they did five years ago, but it’s worth being aware of. “One thing I’ve learned is that it’s much better to pay with coins than to use a foreign credit card,” said Josephine Remo Finderup, an editor and virtual nomad. “It’s one of those little tricks that make all the difference in the fate of your coins. “As rent and food are much more affordable here, he plans to stay six months before returning to Europe. .
A smart community can also reduce costs. Alex Trembath, a blogger for Career Gappers, recently stayed in the historic district of San Telmo, which he said was an ideal base for economic activities. “On Sundays there is a lively weekly market, affordable places to eat and drink, and fantastic walking tours to explore the art and culture of the domain and nearby community of Boca,” he said.
He also went to a milonganight, where visitors can learn how to tango with locals. “It’s a lot cheaper than going to one of the touristy tango shows,” he said. “And a more authentic experience.”
Travelers find Toronto a welcoming destination, especially for families (Istvan Kadar Photography/Getty Images)
Toronto Canada
While North American inflation has slowed, big US cities like New York and Los Angeles still rank within the top-10 most-expensive places in the world. Meanwhile, Canadian cities to the north continue to remain lower in the cost-of-living rankings. Of all the Canadian cities ranked, Toronto ranks the most affordable, coming in at number 27.
In addition to being one of the most livable cities in the world, travelers find Toronto to be a welcoming destination, especially for families.
Toronto resident Stephanie Ciccarelli, co-founder of vacation rental platform Lake, recommends city sightseeing via boat cruise on Lake Ontario, visiting the Hockey Hall of Fame, or ascending the iconic CN Tower. “A fan favourite is going up the tower in its high-speed elevator to walk the iconic observation deck for a panoramic view of the cityscape and waterfront,” said Ciccarelli.
Toronto is also known as “the city in a park,” with plenty of green spaces to spend time in nature. “I love being able to get out of my apartment and take a great walk and enjoy the outdoors. “said Natalia Buia, a Toronto resident. Her favorites are High Park, Trinity Bellwoods and Toronto Island Park.
And while he claims that inflation can still be felt here, you can find a varied variety of foods at all price points. “Whether you want to grab a bite to eat at a local restaurant or enjoy a good meal, you can find literally any type of food you need at any time of the day,” Buia said. Just like in New York, there’s no shortage of exquisite restaurants, but I’d say it’s a little more affordable here. “
Despite its reputation for being a beloved and busy place, Tokyo offers many herbal opportunities to keep prices low (Laurie Noble/Getty Images)
Tokyo, Japan
Tokyo, which has fallen three spots in the index this year and ranks 60th overall, is still the most expensive city in Japan but is now more affordable than other Asian cities such as Singapore and Hong Kong. While other countries struggle with inflation, Japan has been waging a war against deflation for several years, seeking the yen’s financial strength. This, combined with Japan’s full reopening to tourism recently after Covid, makes it an especially affordable time for travelers to make a layover.
“The burden of living in Tokyo is good for cities like New York, London and Singapore,” said Tokyo-based Masa Yamamoto, senior director of corporate communications at asset developer Mori. This makes urban attractions and reports of big cities much more readily available here, and the many herbal opportunities within the city itself can keep prices down.
Yamamoto encourages tourists to walk freely through the 24,000 square meters of urban gardens and public art installations in the new Azabudai Hills district. Visitors will be surrounded by 320 species of plants and will be able to enjoy an orchard with 11 types of fruit trees, adding tangerines, blueberries, lemons, apples, peaches and plums,” he said.
To get to know the city, he recommends the Mori Museum of Contemporary Art and its attached Tokyo City View, which offers a view of the city from 250 m above sea level for just 2,000 yen.
Cottesloe Beach is one of Perth’s most iconic swimming spots (Neal Pritchard Photography/Getty Images)
Perth, Australia
Much more affordable than its eastern neighbours Sydney and Melbourne, Perth offers its citizens an even less difficult laid-back lifestyle thanks to its mild climate, beautiful beaches and abundant nature. Since Perth has a large number of workers in the mining sector, salaries also tend to be higher, giving locals greater purchasing power.
“Perth’s affordability allows me to live a more comfortable lifestyle. My rent would double or even triple for a comparable apartment in Sydney,” said Nadia Cuthbertson, Perth resident and founder of Perth Weekend. “I have more disposable revenue streams to spend, get out and enjoy activities like cocktails at the rooftop bars and seafood dinners with ocean views. “
His favourite rooftop spots are the Rooftop at QT for its stunning views and the Mechanics Institute for its more laid-back atmosphere, though he also recommends fish and chips at the iconic Cottesloe Beach as the sun sets over the ocean. If you need to explore nature, he recommends chartering a catamaran from the South Perth Foreshore to cruise the Swan River or snorkeling at Mettams Pool, a naturally shaped lagoon that’s home to starfish and molluscs.
Living In is a BBC travel series exploring what it means to live in some of the world’s most beautiful destinations.
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