Dublin is now the costliest city in the Eurozone to live in for expats, having overtaken Paris, according to a new survey.
The capital is also ranked 32 among the world’s most expensive cities.
It shot up the league table from number 66, primarily as a result of the strength of the euro compared to the dollar.
But the soaring cost of rental accommodation is also a major factor that has fuelled Dublin’s meteoric rise on the table, according to the survey by global consultants Mercer.
“The survey identifies cost pressures on expatriate rental accommodation in Dublin as the key driver of this and this in turn reflects the growth of the economy with continuing high levels of foreign direct investment,” said Noel O’Connor, a senior consultant at Mercer.
The survey uses New York City as its base for comparisons, and 375 cities around the world were assessed using items such as costs for accommodation, transportation, food, clothing, household goods and entertainment.
Two European cities are among the world’s 10 most expensive for expats – Zurich at number three and Bern in tenth place. Geneva fell four places to number 11 due to a decline in the city’s housing market.
Hong Kong is the most expensive city in the world for expats, according to the survey.
Globally, it’s followed by Asian cities including Tokyo at number two, Singapore at number four, Seoul in fifth place, Shanghai in seventh and Beijing ranking ninth.
“Stronger Chinese monetary regulation, a flourishing economy and a push to have the Chinese yuan as an international currency pushed Chinese cities up in the ranking,” said Yvonne Traber, global mobility product solutions leader at Mercer.
London is ranked number 19 on the list, with Frankfurt at 68 and Berlin at 71. Belfast is ranked 152, up 18 places.
The cost of accommodation in Ireland, and particularly around cities including Dublin, is becoming a significant concern in terms of its potential impact on foreign direct investment into the country.
A recent survey by Ernst & Young showed that Ireland has fallen out of the top 10 most attractive destinations in Europe for foreign direct investment.
Minister for Business, Enterprise and Innovation, Heather Humphreys, said last week that the decline in Ireland’s ranking was “disappointing”, but insisted that Ireland remains a competitive country.
“The government is nevertheless conscious of our need to remain as competitive as possible,” she added.
“We cannot become complacent in relation to our hard-won gains of recent years.”
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