The Asia-Pacific (APAC) region has fallen down the regional ranking to second place for the first time, due to lower rankings for cities like Tokyo, and a very strong return to prominence for Europe, Middle East and Africa (EMEA), the report shows.

Last year, EMEA was the cheapest region for living well. This year, driven by London taking the third spot (up from fourth) and every single European city moving up the ranking, as well as strong exchange rates versus the dollar, EMEA is the most expensive region in which to live well. Although the Americas fall to last place, both New York and São Paulo remain in the top 10.

The Lifestyle Survey delves into the lives and consumption trends of HNW individuals in 15 countries in Europe, APAC, the Middle East, Latin America, and North America. The survey also examines shifts in consumption patterns and looks into the reasons behind these changes.

In 2024, price rises globally have slowed to 4 per cent on average in dollar terms, compared with 6 per cent in 2023. However, significant price increases over the past 12 months have helped to position EMEA as this year’s most expensive region. In this year’s index, Zurich climbed eight places, while Milan and Paris rose by six and five places respectively. London has also overtaken Shanghai to take third place since last year.  

“Over the past year, the inflationary environment in the UK has meant sustained higher living costs for all levels of consumer, as prices for everything from staples to luxuries have remained elevated. This year’s results show the premium paid for education, hospitality, and legal services, as well as luxury fashion items in London can be attributed to increasing labour, goods, and real estate costs,” Jamie Banks, head of wealth planning UK, said.

“As a city, London retains its attractiveness for quality of life, economic opportunity, and relative stability, compared to European and international rivals. However, recent legislative changes, a prospective change of government, and the significant cost for items such as premium property, medical services and education, risk dampening its draw for wealthy individuals and families,” he said.

Meanwhile, the Americas are the most expensive region for healthcare-related costs, at 86 per cent more than the global average. The region is also significantly more expensive than the global average for champagne (27 per cent), whisky (22 per cent), and bicycles (9 per cent). The Americas also lay claim to the most extreme regional increase for any item year-on-year: hotel suites were up almost 34 per cent compared with 12 months ago in US dollar terms. Average prices in this region rose by 6 per cent.

Overall, currency fluctuations have played a significant role with regards to the biggest risers and fallers in the index this year. While costs have often barely changed in local currency, the conversion to the dollar made the difference. Index prices are converted to the dollar to allow for global comparison, and the strength of currencies such as the Swiss franc and, conversely, the poor performance of currencies such as the Japanese yen are clearly seen in the performance of these cities in dollar terms.

“This year’s report shows that currencies matter a lot. Take Tokyo as an example. This used to be the posterchild of an ultra-expensive city in the 1990s. However, the steady decline of the yen has shown how this can change. As trivial as it seems, we tend to forget that the costs of living look completely different in the eyes of a stranger – especially if that person thinks in US dollars or Swiss francs instead of the local currency. Currency and context matter,” Christian Gattiker, head of research, Julius Baer, said.