Limassol ‘the second cheapest city in Europe’

LIMASSOL has been named as Europe’s second-cheapest city for the third year running, according to the latest Cost of Living Survey from Mercer Human Resource Consulting.

Placed 118th out of 144 cities worldwide on the list, Limassol scored 68.7. At 100, New York is the benchmark of expense for the survey. Last year, Limassol was ranked 100th and in 2004 it was in 95th place.

Leipzig in Germany is the only European city cheaper than Limassol, according to the survey.

Mercer said Moscow had replaced Tokyo as the world’s most expensive city, which also makes it the most expensive city in Europe, with London coming in second.

Seoul was in second place globally, climbing three places since last year. Tokyo moved down two positions in the rankings to take third place, followed by Hong Kong. Asuncion in Paraguay remained the least expensive city in the world of those surveyed.

Moscow scores 123.9 and is nearly three times costlier than Asuncion, which has an index of 43.5.

Mercer’s survey covers 144 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. It is the world’s most comprehensive cost-of-living survey and is used to help multinational companies and governments determine compensation allowances for their expatriate employees.

“We have seen significant shifts in the cost-of-living rankings over the past few years, reflecting a changing global market. For many companies, it can now be more expensive to send employees to work in Russia or Korea than places like Japan or Switzerland, which are often perceived to be more costly,” said Rebecca Powers, a Senior Consultant with Mercer’s international business.

“More companies are now sending employees on expatriate assignments, so there is a greater need to keep pace with the cost of living changes.

Employers need to be proactive in managing their expatriate programmes to ensure they receive a proper return on their investment and employees are compensated fairly.”