What does it really cost to live anywhere in the world?
For Global Mobility teams, “cost of living” is rarely just a number. It’s a housing budget that no longer works, a salary package that feels different after rent, or a city that suddenly becomes more or less affordable.
The latest Mapping the World’s Prices 2026 report from Deutsche Bank Research Institute shows how much the global cost map has shifted, with some unexpected moves across cities like Tokyo, Budapest, Prague and New York. For Mobility teams, these aren’t just statistics. They are signals that can shape budgets, policies and destination choices.
1. Tokyo: when an expensive city becomes surprisingly affordable
Tokyo was once synonymous with high living costs. Today, the picture is very different. A weaker yen and relatively low domestic inflation have made the city surprisingly affordable by developed-market standards. A few numbers make the shift tangible:
- A three-bedroom apartment in Tokyo costs almost one quarter of the equivalent rental in New York.
- Tokyo’s apartment purchase prices are around a quarter lower than a decade ago.
- A meal for two is around one third of the cost in Zurich or New York.
- Japan is the cheapest market in the study for buying an iPhone.
Tokyo’s story is a reminder that affordability is relative. What felt expensive a decade ago can look very different today – and employees’ purchasing power changes with it.
2. Prague, Budapest and Warsaw: the “affordable Europe” story is changing
Central Europe was once a clear choice for lower-cost international assignments. That picture is changing fast. Since 2016, apartment purchase prices have risen by more than 150% in Budapest and Prague, while salaries have risen sharply and rents have also more than doubled in several of these markets. A location that was once included in a “lower-cost destination” category may no longer fit that category – particularly for employees with families requiring larger accommodation. The cost of the destination is changing faster than the label attached to it.
3. Housing is where mobility budgets can quietly drift
Perhaps the most useful insight for mobility professionals is what happens when you take rent out of the equation: New York is an excellent example. It ranks among the world’s highest-paying cities, but once housing costs are considered, its disposable-income ranking falls dramatically. Similar patterns appear in Hong Kong, Singapore, Sydney, London and Dubai.
For an employee considering a move, the question isn’t: “How much will I earn?” It is: “How much of my income will actually remain after living costs?” That is the difference between salary competitiveness and real purchasing power.
4. Beyond housing: Measuring everyday affordability
Deutsche Bank’s “Cheap Date” index combines a surprisingly relatable basket: a bottle of wine, a pair of jeans, a dress, two coffees, a meal for two in mid-range restaurant, two cinema tickets, 2 transport tickets one way, a 5 km taxi ride. Geneva and Zurich sit at the top, followed by Tel Aviv, Oslo and Copenhagen. At the other end, Delhi, Bangalore and Mumbai are the three cheapest cities in the index.
The details behind the index are revealing. A mid-range bottle of wine costs around $23 in Singapore versus $4.60 in Rome, while a cappuccino is around $7.13 in Zurich compared with $2.18 in Milan. For beer and cigarettes, the gap is even more striking: Melbourne reaches $111.20 for the combined basket, while Shanghai comes in at just $10.40. Digital connectivity adds another layer: monthly internet can cost around $95 in Dubai versus $7 in Delhi. Sometimes the smallest everyday expenses tell the biggest story about what a city really costs.
Why does this matter? Because employees experience inflation through everyday life. These small expenses accumulate into a very real perception of whether a relocation feels financially comfortable.
5. Local systems can change the cost of living
One of the report’s most striking comparisons is the price of a Volkswagen Golf. In Singapore, the equivalent new car costs around $156,223 – roughly 4.4 times the New York price because of Singapore’s Certificate of Entitlement system. But the differences don’t stop at the price of the car itself. Transport costs vary just as dramatically, from London’s expensive public transport to Luxembourg’s largely free system and Hong Kong’s high fuel prices.
The takeaway for Mobility teams is simple: local systems matter. Taxes, regulations, transport and infrastructure can significantly shape the real cost of an assignment – A single employee living centrally and using public transport has a completely different cost structure from a family of four living outside the city and requiring a car.
6. Even the iPhone tells a story about global mobility
Japan has the cheapest iPhone in the study. Türkiye sits at the other extreme, with the iPhone 17 Pro costing around 2.4 times the US price. Switzerland is particularly interesting: despite being one of the world’s most expensive countries overall, it has the cheapest iPhone among European economies in the study, helped by its relatively low VAT rate.
7. Five cities where the numbers tell a different story
Five cities make the top 10 for both quality of life and disposable income: Luxembourg, Copenhagen, Frankfurt, Geneva and Zurich. Interestingly, no US city makes both lists. This doesn’t mean these are automatically the best destinations for every employee. Quality of life is subjective, and every assignment has different requirements.
What should Global Mobility teams take away?
The most important lesson from the data is not that Zurich is expensive, Tokyo is cheap or New York has high rents. It is this: Global mobility is becoming less predictable. Currencies shift, housing markets reprice, salaries converge and everyday costs evolve. Static policies are no longer enough. Mobility strategies need to connect the data with the individual: “What does this move cost for this employee, at this point in time – and how is that likely to evolve?”
At MRS, we help organizations navigate these complexities with a more connected approach to international mobility – combining expertise, coordination and data to help companies control costs while keeping the employee experience at the center because ultimately, global mobility isn’t about moving people from one city to another. It’s about making the move work – for the business and for the person. Want to make your mobility program more predictable? Let’s talk.
MRS Management
Sources:
Mapping the World’s Prices 2026
Economic times: Delhi world’s cheapest for dates
iPhone 17 Pro prices: How Europe compares with the US and the world
Istanbul among world’s costliest cities to buy VW Golf, iPhone: Report