The annual report of the Swiss wealth management firm “Julius Baer Group” confirmed the continued dominance of Singapore on the list of the world’s most expensive cities in terms of the cost of luxury living and spending on luxury goods, such as jewelry and shoes, as well as healthcare and education services. This is due to Singapore’s growing appeal to the wealthy, as its prestigious standing is attributed to its well-established reputation for political and economic stability, as well as its business-friendly environment.

Hong Kong ranked second after Singapore, moving up one spot from last year. London also saw a notable rise in the rankings, taking third place, supported by the strength of the British pound.

In contrast, Shanghai slipped to fourth place amid challenges facing China’s real estate sector and declining consumer confidence. Tokyo also saw its ranking drop, placing 23rd due to the weakness of the Japanese yen. Meanwhile, Dubai fell from seventh place in 2023 to twelfth in the current ranking.

The Julius Baer Group report relies on the “Lifestyle Index” to rank the world’s 25 most expensive cities in terms of the cost of luxury living. This index includes a comprehensive analysis of a wide range of goods and services that are key indicators of a luxurious lifestyle, ranging from residential real estate prices and luxury cars, to education costs and entertainment expenses, including luxury dinners. This ranking is based on a survey of high-net-worth individuals with assets exceeding one million U.S. dollars, conducted between February and March 2024.

The report highlighted the role of currency fluctuations, resulting from global instability, in influencing the cities" rankings within this year’s ranking.

This year saw a slowdown in the rate of price increases, with an average of 4% against the U.S. dollar, compared to 6% in 2023. This was reflected in goods prices rising at a faster pace than service prices.

According to the report, the cost of bicycles declined in most cities, due to abundant supply following the "COVID-19“ period. The cost of business-class air travel also declined as air travel returned to normal following the sharp rise in prices seen in the wake of the pandemic due to increased demand.

In contrast, the cost of jewelry and women’s shoes rose significantly.