If you think the most expensive cities in the world to live in 2025 are the usual suspects like New York, Singapore, or London, think again. According to the latest global cost of living index compiled by Numbeo, none of these international icons take the crown. Instead, six Swiss cities dominate the ranking, with Zurich officially named the most expensive city in the world in 2025.
This annual study evaluates the cost of essential goods and services such as food, dining out, utilities, and transportation, using New York City as the baseline index of 100. Rent and mortgage costs are excluded to focus on daily living expenses. The results for 2025 show a dramatic reshaping of the global cost-of-living map.
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Why Zurich Is the Most Expensive City in the World in 2025
Zurich, Switzerland, ranks number one as the most expensive city in the world to live in 2025. But what makes it so costly?
- Groceries and food: Everyday essentials cost far more than the global average. A simple cappuccino or grocery basket is noticeably pricier compared to major tourist hubs.
- Dining out and entertainment: Eating in restaurants, grabbing drinks, or going to the movies all come with steep price tags.
- Utilities and services: Electricity, internet, and basic services are consistently higher due to Switzerland’s infrastructure costs.
The Swiss franc remains one of the strongest global currencies, and high wages further drive up costs. Yet, these elevated prices come with a trade-off: Zurich consistently ranks as one of the happiest and healthiest cities in the world. Public transportation is reliable, the city is exceptionally safe, and healthcare systems are world-class.
Interestingly, rent in Zurich is proportionally cheaper than in New York. Housing isn’t the biggest drain on residents’ wallets—it’s food, utilities, and lifestyle expenses that stretch household budgets.
The Top Six Most Expensive Cities in the World to Live in 2025
Switzerland doesn’t just hold the number one spot. It dominates the entire top six.
| Rank | City | Country | Index vs New York (100) |
|---|---|---|---|
| 1 | Zurich | Switzerland | Highest (above 100) |
| 2 | Geneva | Switzerland | ~99 |
| 3 | Basel | Switzerland | ~97 |
| 4 | Lausanne | Switzerland | ~95 |
| 5 | Lugano | Switzerland | ~94 |
| 6 | Bern | Switzerland | ~93 |
All six cities share similar characteristics: strong economies, high wages, stable infrastructure, and exceptional quality of life. This unique combination explains why Switzerland is home to the most expensive cities in the world in 2025.
Where Does New York Rank?
Despite being the reference benchmark, New York City only ranks seventh. Rent in Manhattan is notoriously expensive, but the broader cost of groceries, restaurants, and services doesn’t match the extreme levels seen in Zurich or Geneva.
Still, New York remains one of the priciest cities in North America, alongside Honolulu and San Francisco, both of which appear in the top 10.
The Full Top 10 Most Expensive Cities in 2025
- Zurich, Switzerland
- Geneva, Switzerland
- Basel, Switzerland
- Lausanne, Switzerland
- Lugano, Switzerland
- Bern, Switzerland
- New York, USA
- Reykjavik, Iceland
- Honolulu, USA
- San Francisco, USA
These results highlight a trend: small but wealthy nations with strong currencies and high standards of living (like Switzerland and Iceland) dominate the rankings, while globally iconic megacities like London, Paris, or Tokyo have slipped further down the list.
Why Are Swiss Cities So Expensive?
Several key factors explain Switzerland’s dominance:
- High Wages – Average salaries are among the highest in the world, but this also pushes up prices across the board.
- Strong Swiss Franc – A robust currency means imports are expensive, and tourists often feel the price shock immediately.
- Quality Standards – From food safety to healthcare, Swiss standards are exceptionally high, which comes at a cost.
- Limited Land Supply – Smaller cities with high demand for resources drive prices upward.
- Lifestyle Costs – Dining, entertainment, and services are consistently premium priced.
This makes Swiss cities both desirable and difficult for outsiders. For expats, the trade-off is a safe, clean, and efficient place to live—if they can afford it.
The Cheapest Cities in the World in 2025
At the other end of the spectrum, India dominates the ranking of the world’s most affordable cities.
- Coimbatore, India – The cheapest city in the world with a cost-of-living index of just 17.1.
- Indore, India – Slightly higher but still far below the global average.
- Lucknow, India – Another affordable Indian city with very low living costs.
- Lahore, Pakistan – One of the cheapest cities outside India.
Living in these cities is often less than a fifth of the cost of living in New York or Zurich, showing just how wide the global gap has become.
Mexico’s Position in the Global Ranking
Within Latin America, Mexico’s major cities appear far down the list:
- Monterrey ranks 236th.
- Cancún ranks 241st.
- Mexico City ranks 255th.
Despite being a bustling metropolis, Mexico City is not the most expensive city in Mexico, largely because of more affordable local services and lower food prices compared to resort areas like Cancún.
The Broader Trends in 2025’s Cost of Living Index
The 2025 data reveals several global patterns:
- Europe dominates the top tier – Not just Switzerland, but Iceland and parts of Scandinavia continue to rise.
- North America remains split – New York, San Francisco, and Honolulu rank high, but other U.S. cities are far more affordable.
- Asia shows mixed results – Singapore, Hong Kong, and Tokyo are expensive, but they no longer crack the top 10.
- Developing countries offer affordability – India, Pakistan, and parts of Southeast Asia remain the most budget-friendly.
The Numbeo Cost of Living Index is updated regularly and crowdsourced from residents worldwide, offering a dynamic picture of how global living expenses shift over time.
The Reality of Living in the Most Expensive Cities in the World
While Zurich takes the crown as the most expensive city in the world in 2025, it’s important to look beyond the numbers. High costs often go hand-in-hand with high quality of life. Swiss cities may be pricey, but they offer stability, safety, and opportunities that justify the expense for many.
On the flip side, the cheapest cities provide affordability but may lack the infrastructure, healthcare, or income levels of their pricier counterparts. The choice of where to live is always a balance between cost and lifestyle.
The 2025 ranking highlights one thing clearly: globalization has not created uniformity. Cities around the world remain radically different in what it costs to live there—and that’s what makes the global map so fascinating.
