Mumbai in top 20 most expensive cities for luxury living

Mumbai, India’s financial capital, notably climbed from twenty-fourth to eighteenth place in the rankings of Julius Baer’s Lifestyle Index.

With the gradual lifting of pandemic restrictions and the return of freedom, the demand for travel and entertainment has surged, contributing to Asia’s continued dominance in luxury living.

The Lifestyle Index, which ranks the world’s 25 most expensive cities, has once again identified Asia as the world’s most expensive region for luxury living, a position it has held for four consecutive years. This comprehensive survey takes into account various factors such as residential property, cars, business class flights, business school tuition, degustation dinners, and other indulgences.

Asia has experienced an average price increase of 13 percent in local currency for all items included in the Index over the past year. Some categories have seen even higher hikes, with hotel suites, business class flights, and cars leading the way with average rises of 39.1 percent, 32.9 percent, and 25.2 percent, respectively.

Among individual cities, Singapore has now claimed the top spot globally and regionally, surpassing Shanghai, Hong Kong, and Taipei. While Shanghai has slipped into second place, it remains an expensive city, although its average prices in local currency have only risen by 3 percent. This modest increase can be attributed to the ongoing pandemic restrictions in 2022. In contrast, Hong Kong, which lifted its final restrictions ahead of Shanghai, has witnessed a continued surge in prices, particularly in the hospitality sector. Hotel suite prices skyrocketed by 102 percent, and fine dining prices rose by 45 percent on average.

When examining other cities in the region, two distinct trends emerge. Developed economies like Tokyo and Sydney continue to decline in the rankings, while developing economies such as Bangkok, Jakarta, and Mumbai are on the rise. The Japanese yen has experienced significant fluctuations over the past year, especially against the dollar when comparing prices globally. In Tokyo, prices in local currency have risen for all Index items except fine dining, which saw a 2 percent decrease. It is worth noting that Japan has witnessed its fastest price growth in four decades during 2022.

In Asia’s developing economies, robust growth is accompanied by substantial price increases in consumer goods. Jakarta, in particular, experienced the highest average increase globally, with local currency prices rising by 22 percent. Bangkok, Jakarta, and Mumbai are expected to continue challenging their more established counterparts for higher positions in the city rankings.

Across the region, the Lifestyle Survey by Julius Baer highlights a significant resurgence in mobility, with the greatest global increases observed in commercial flights and private vehicle usage. The demand for hospitality and travel is expected to persist, while discretionary spending on fashion and luxury goods is likely to maintain momentum, especially following the reopening of China in early 2023.