Four Cities You Should Consider Living In As An Expat

Xpatulator.com's Cost of Living Rankings always highlight the most expensive cities to live in as an expat, but what about the cheaper cities, the ones that will curl your toes, that are less costly, more interesting and offer great opportunities.  

Read more about four of the most overlooked cities where the cost of living is relatively low.

1. Dalian - The Back Door to China

China’s two largest cities - Shanghai and Beijing have been steadily climbing up the global cost of living rankings.

Shanghai breaking into the top twenty in 17th position, according to Xpatulator.com’s 2014 Q1 report. 

Beijing coming in at 28th spot. Why? Rising housing costs have made the biggest jump while everything from transportation to groceries has also been climbing.

However it is the little known Dalian that has a long history of foreign workers.

Dalian ranks 227th in the cost of living rankings of 780 locations. Compared to Shanghai, a luxury 3-bedroom suburban apartment will cost roughly half at $1271 USD per month in Dalian compared to $2371 in Shanghai. Taxi fares are also around 20% cheaper.  

In 2006 China Daily News ranked Dalian as China’s most livable city. For western workers, companies like Dell and Intel both have manufacturing and administrative offices here.

2. Budapest - The Unsung European Capital

Capital cities in Europe such as Stockholm, Paris and Oslo were near the top of the rankings, Budapest, the capital of Hungary, is the bargain city to be looking at. Budapest placed 536th out of the over 700 cities.

In a pub in Budapest you can expect to pay the equivalent of 89 U.S. pennies for a half liter bottle of domestic beer, while a local brew in Geneva, runs up to $2.54, nearly three times more. A four star hotel in Budapest averages $204 USD a night while in Geneva, expect to pay around $540.

The purchasing power parity (PPP) of the average Budapest wage earner is 147% of the average for the European Union as a whole. With nearly 400,000 companies operating in the city there are excellent opportunities in virtually every industry.

3. Cape Town - From Supply Stop to Global Center

This former colony has become a major international center. As the home of the South African Parliament, it also ranks as the manufacturing and business center for the southern part of the country. Almost every major international company has their manufacturing and operations headquartered here, including Johnson & Johnson, Levis Strauss and Adidas.

Despite its position as a global city, Cape Town ranks 550th on the Xpatulator.com global cost of living. Comparing costs it’s not hard to see why Cape Town is attracting attention among foreign workers. A Big Mac, can cost the equivalent of $4.18 USD, while the cost of private schooling - yearly tuition at an international school in Cape Town averages $8,320.

Cape Town is also actively promoting itself as a destination for foreign workers in key professions where it sees a skills gap. While unemployment in rural areas of South Africa is as high as 70% due to a large number of unskilled workers; teachers, engineers, medical and IT workers are in high demand and are eligible for special work permits through the S.A. Department of Home Affairs.

4. Calgary - Canadian Hub for Oil and Gas

Calgary is the booming center for Canada’s oil and natural gas industry, and it’s fastest growing economy. 

As the corporate headquarters for virtually every company involved in developing the Alberta tar sands, as well as renewed production from what is known in the industry as non-traditional drilling, Calgary is a bastion of stability in the global world of big oil.

Many expats are moving to this city from other places such as the volatile Caracas.

As the 87th most expensive city on Xpatulator.com’s latest report, Calgary is not cheap. When you consider however that the top 3 most expensive cities in the World are centers for oil and gas, Calgary becomes an attractive option. Canadian news agency, the Globe and Mail has reported that workers have been moving to Calgary “en mass” from the troubled oil fields of Caracas, Venezuela. Caracas ranks #2 and Luanda, Angola ranks #1 among the World’s most expensive cities.

  

In a global economy, international experience is a huge boost to personal marketability. As markets and businesses spill across borders and around the globe, the demand for skilled workers with international business experience and cultural sensitivity is growing. For experienced expat workers in many key positions there is also the prospect of an exceptionally high standard of living.

The new global cost of living rankings released by Xpatulator.com reveal that costs have risen sharply in many of the most popular destinations for expat workers, but there are still low cost cities with great opportunities.

If you are considering an overseas assignment you can access detailed cost of living ranking information on any one of 780 different locations through Xpatulator.com. Their online calculators also help you estimate the salary and benefits you will need to maintain the same purchasing power and standard of living on an overseas assignment.

Hungary, Budapest Cost of Living January 2010

LOCATION: Hungary is in Central Europe, northwest of Romania.

CAPITAL CITY: Budapest

LARGEST CITY: Budapest

CURRENCY: Hungarian Forint (HUF)

ECONOMY: Hungary has a free market economy, it continues to demonstrate economic growth as one of the newest member countries of the EU. Hungary gets almost one third of all foreign direct investment flowing into Central Europe. Foreign ownership of and investment in Hungarian firms is widespread. Budapest and is the country's principal political, cultural, commercial, industrial and transportation centre. Budapest attracts over 20 million tourists a year, making it one of the top destinations to visit in Europe.

Budapest 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. Budapest is currently ranked 79 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 64 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 relatively more expensive compared to other cities with a rank of 61 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 equally expensive on average compared to other cities with a rank of 175 out of 276.

Education costs such as creche / pre-school fees, high school / college fees, primary school fees, and tertiary study fees is equally expensive on average compared to other cities with a rank of 157 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 equally expensive on average compared to other cities with a rank of 128 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 less expensive compared to other cities with a rank of 213 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 129 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 relatively more expensive compared to other cities with a rank of 81 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 relatively more expensive compared to other cities with a rank of 74 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 96 out of 276.

Recreation and Culture costs such as books, camera film, cinema ticket, DVD and CDs, sports goods, and theatre tickets is relatively more expensive compared to other cities with a rank of 82 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 62 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 27 out of 276.

Your exact customized cost of living index for Budapest 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, Budapest is ranked as a some hardship location with a hardship index of 20%.

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