Monday, June 18, 2007

Moscow - World's Most Expensive City

Be sure to bring plenty of cash next time you come to Moscow. Mercer Human Resources Consulting, according to the Financial Times, has placed Moscow for the second year in a row at the top of the list of the world's most expensive cities for expatriate employees. The continuing weakness in the dollar made sure that New York would be knocked out of the top 10 in Mercer's list.

The top 10 were dominated by European cities, with London claiming the #2 spot, and Geneva, Zurich, Copenhagen, and Oslo closely in pursuit.

It must be noted that the survey is not focused on providing figures for an average expense for an average city citizen, rather its goal is to provide a ballpark figure of what an employer would need to be pay an employee in a particular city. The survey is neither a clear picture of the well-being of a city. The basket of goods includes a luxurious two bedroom apartment (presumably in the city center), as well as reasonably high expenditures for clothing and entertainment.

Moscow's position at the top of Mercer's table may most likely be attributed to the extreme shortage of upper-middle-class housing projects and appropriate infrastructure. Such shortages obviously push up prices drastically. Office space in central Moscow costs close to 50% more than in downtown Manhattan. The situation with apartment housing in central Moscow is similar.

The picture is improving as fast as it can, given the obvious bureaucracy associated with the Russian capital. Moscow city is well under construction (pictured) and roads, subway lines, and, most importantly three and four star hotels (which are in such shortage) are planned to be added in vast quantities very soon.

1 comment:

Biby Cletus said...

Cool blog,good stuff you have it on here do publish more often

keep in touch and keep the good work going will be back soon.

Warm Regards

Biby Cletus