Moving to Baku

In our series of short blogs on moving between different international locations, we highlight cost of living and other major differences likely to be experienced. Today we look at moving to Baku in Azerbaijan from Luanda in Angola. In Luanda people speak Portuguese (official), Umbundu, Kimbundu and Kikongo. In Baku people speak Azeri and Russian. Luanda is the capital and largest city of Angola.

Located on Angola's coast with the Atlantic Ocean, Luanda is both Angola's chief seaport and administrative center. It is also the capital city of Luanda Province. The city is currently undergoing a major reconstruction, with many large developments taking place that will alter the cityscape significantly. Baku is the capital, the largest city, and the largest port of Azerbaijan and all the Caucasus. Around one-third of Angolans live in Luanda, 57% of whom live in poverty. Living conditions in Luanda are extremely poor, with essential services such as safe drinking water still in short supply. The basis of Baku's economy is petroleum. The existence of petroleum has been known since the 8th century. The World War II Battle of Stalingrad was fought to determine who would have control of the Baku oil fields. Fifty years before the battle, Baku produced half of the world's oil supply. Currently the oil economy of Baku is undergoing a resurgence.

The overall cost of living rank in Luanda is 19 out of 300 global locations, which equates it with high cost of living locations. An expatriate moving from Luanda to Baku which has an overall cost of living rank of 82, which equates it with high cost of living locations, will experience a change in cost of living of -14.8%.
In terms of the hardship people are likely to experience, assessed in global terms, Baku is ranked as an extreme hardship location with a hardship index of 40% compared to Luanda with a hardship index of 40% which is an extreme hardship location.

Source: http://www.xpatulator.com as at July 2011.

Expatriate Pay in Baku, Azerbaijan

Azerbaijan is in South Western Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range.

The economy of Azerbaijan has largely completed its post-Soviet transition into a major oil based economy with the completion of the Baku-Tbilisi-Ceyhan Pipeline.

Baku has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.
Baku is currently ranked 81 overall, most expensive place in the world for expatriates to live, out of 300 international locations.

Comparing the cost of living in Baku basket by basket with Riyadh, Saudi Arabia, shows that in Baku.....more

Azerbaijan, Baku Cost of living January 2010

LOCATION: Azerbaijan is in South-western Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range.

CAPITAL CITY: Baku

LARGEST CITY: Baku

CURRENCY: Azerbaijan New Manat (AZN)

ECONOMY: Azerbaijan's economy is based around petroleum, oil is it's number one export. Growth in the economy is dependent on world oil prices, the location of new pipelines in the region, and Azerbaijan's ability to manage its oil wealth.
Baku has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Baku is currently ranked 93 overall, most expensive place in the world for expatriates to live, out of 276 international locations. The cost of living overview for each of the 13 Basket Groups is as follows:

Alcohol & Tobacco costs for alcoholic beverages such as alcohol at bar, beer, locally produced spirit, whiskey, and wine as well as tobacco products such as cigarettes is relatively more expensive compared to other cities with a rank of 37 out of 276.

Clothing costs for clothing and footwear products such as business suits, casual clothing, childrens clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear is equally expensive on average compared to other cities with a rank of 102 out of 276.

Communication costs for various communication costs such as home telephone rental and call charges, internet connection and service provider fees, mobile / cellular phone contract and calls is relatively more expensive compared to other cities with a rank of 76 out of 276.

Education costs such as creche / pre-school fees, high school / college fees, primary school fees, and tertiary study fees is relatively less expensive compared to other cities with a rank of 209 out of 276.

Furniture & Appliance costs for furniture, household equipment and household appliances such as dvd player, fridge freezer, iron, kettle, toaster, microwave, light bulbs, television, vacuum cleaner, and washing machine is relatively more expensive compared to other cities with a rank of 18 out of 276.

Grocery costs for food, non-alcoholic beverages and cleaning material items such as baby consumables, baked goods, baking, canned foods, cheese, cleaning products, dairy, fresh fruits, fresh vegetables, fruit juices, meat, oil & vinegars, pet food, pre-prepared meals, sauces, seafood, snacks, soft drinks, spices & herbs is relatively more expensive compared to other cities with a rank of 73 out of 276.

Healthcare costs for general healthcare, medical and medical insurance such as general practitioner consultation rates, hospital private ward daily rate, non-prescription medicine, and private medical insurance / medical aid contributions is equally expensive on average compared to other cities with a rank of 128 out of 276.

Household costs for housing, water, electricity, household gas, household fuels, local rates and residential taxes such as house / flat mortgage, house / flat rental, household electricity consumption, household gas / fuel consumption, household water consumption, and local property rates / taxes / levies is equally expensive on average compared to other cities with a rank of 118 out of 276.

Miscellaneous costs related to stationary, linen and general goods and services such as domestic help, dry cleaning, linen, office supplies, newspapers and magazines, and postage stamps is equally expensive on average compared to other cities with a rank of 172 out of 276.

Personal Care costs for personal care products and services such as cosmetics, hair care, moisturizer / sun block, nappies, pain relief tablets, toilet paper, toothpaste, and soap / shampoo / conditioner is equally expensive on average compared to other cities with a rank of 172 out of 276.

Recreation and Culture costs such as books, camera film, cinema ticket, DVD and CDs, sports goods, and theatre tickets is equally expensive on average compared to other cities with a rank of 104 out of 276.

Restaurants, Meals Out and Hotel costs such as business dinner, dinner at a restaurant (non fast food), hotel rates, take away drinks and snacks (fast food) is relatively more expensive compared to other cities with a rank of 70 out of 276.

Transport costs for public transport, vehicle costs, vehicle fuel, vehicle insurance and vehicle maintenance such as hire purchase / lease of vehicle, petrol / diesel, public transport service maintenance, tires, vehicle Insurance, and vehicle purchase is relatively more expensive compared to other cities with a rank of 85 out of 276.

Your exact customized cost of living index for Baku is based on which of the above basket groups as well as the comparison location you select in the Calculators.

In terms of the hardship people are likely to experience, assessed in global terms, Baku is ranked as an extreme hardship location with a hardship index of 40%.

Your exact customized hardship index premium for Baku is based on the comparison location that you select in the Calculators.