India, with its diverse culture, rich traditions and rapid economic growth, is becoming increasingly attractive to foreigners looking for new opportunities and experiences. However, along with its growing popularity comes the issue of cost of living. Learn more about the most expensive cities for foreigners in India

Order an insurance policy for safe travel to any part of the world

BUY

Mumbai was ranked 147th in the global ranking, showing the most significant drop of 20 positions since 2022. According to the ranking, the cities listed in ascending order are New Delhi (169), Chennai (184), Bengaluru (189), Hyderabad (202), Kolkata (211) and Pune (213). Compared to the 2022 cost of living study, Pune has become the least expensive Indian city for emigrants, displacing Kolkata from its previous position. The largest number of migrants come to India from Bangladesh, Nepal and Syria.

Rating of the most expensive cities in India for migrants

1. Mumbai

Mumbai, the largest city in India, is famous for its financial activities and cultural wealth. According to ratings, it is one of the most expensive cities for foreigners in the country. The main factors that determine the cost of living here are high housing prices, traffic congestion, and demand for limited space in this densely populated city. Large enterprises, banks and financial institutions guarantee high standards of living, but at the same time put some pressure on the infrastructure.

2. Delhi

Delhi, the capital of India, is also known for its high costs. Economic growth and demand for luxury services are driving up the cost of living for foreigners. Even with affordable housing, the cost of education and medical services can be significant. However, many foreigners choose Delhi for its rich cultural experience and business opportunities.

3. Bangalore

Bangalore, known for its IT innovations, is experiencing an increase in the cost of living due to the development of the technology sector. The demand for eco-friendly housing is growing, which affects prices. On the other hand, a variety of cultural events, parks and well-developed networks for foreigners make this city attractive to those looking for more than just a work experience.

4. Chennai

Chennai, with its industrial development and cultural heritage, is also becoming increasingly expensive for foreigners. The real estate market is under a lot of pressure due to the growing demand and the development of the city's infrastructure. Nevertheless, the rich cultural experience, modern shopping centers and the development of the arts make Chennai attractive to creative professionals and cultural scholars.

5. Hyderabad

Hyderabad, famous for its gastronomy and industrial development, is also becoming a high-cost city for foreigners. The rapid growth of the IT sector and industry leads to higher prices for housing and services. But for those who appreciate cultural activities and a high lifestyle, Hyderabad can be an exciting choice.

To ensure a safe relocation to a new country, we recommend you to contact specialists. Qualified professionals with a law degree will help you avoid troubles during migration.

Mercer's cost of living study in India

Mumbai, according to the latest Mercer study for 2023, is ranked as the most expensive city in India to rent a home. This giant city has an extremely expensive standard of living. New Delhi and Bengaluru are in second and third place, respectively.

However, compared to other cities surveyed, such as Chennai, Hyderabad, Kolkata, and Pune, Mumbai emerges as the leader in terms of rental costs, exceeding their figures by more than 50%. Kolkata, with the lowest cost of living among these cities, is becoming an attractive choice for locals and expatriates alike.

Recent data indicate a significant increase in rental prices in Indian cities, which determines the trend towards economic dynamics. Mumbai stands out among the rest, with a 13-15% jump in rental prices compared to last year. Cities such as Bangalore, New Delhi, Pune and Chennai have seen moderate growth in the range of 5-7%. In Hyderabad and Kolkata, rental prices rose by 2-3%.

The survey also highlighted cost trends in other areas. The cost of staple foods has increased in all cities, with Kolkata and Pune appearing to be more affordable. In cities such as Bangalore, Chennai and Hyderabad, rising alcohol prices have taken their toll, with Chennai emerging as the leader with the highest prices in this category. The cost of personal care products has increased in all cities, with Mumbai being the most expensive, while Kolkata offers more affordable options.

Services such as electricity and internet have also seen increases in most Indian cities surveyed. Delhi and Mumbai have the highest costs for eating out, while Pune offers more economical options, followed by Bangalore and Hyderabad.

Despite high living costs, cities such as Mumbai and Delhi remain cost-effective for global multinationals looking to set up offices abroad, thanks to their more affordable cost of living compared to other major cities in the Asia Pacific region.

Thus, while Mumbai and Delhi remain in the top 35 most expensive cities in Asia for foreigners, there has been a slight decline. This indicates a slight improvement in the affordability of living for foreigners compared to the previous year. The Indian economy, despite external challenges, remains resilient and one of the fastest growing in the world. Annual consumer inflation in 2023 fell to 5.66%, the lowest since 2021. Active financial activity and stable private consumption contribute to a positive economic landscape.

Daria Rogova, Head of Insurance at Visit World

To move, travel or work safely in a new country, you will need health insurance. You can apply for an extended policy on our website here.

Products from Visit World for a comfortable trip:

Checklist for obtaining a visa and necessary documents in India;

Legal advice on immigration in India;

Travel insurance for foreigners in India;

Medical insurance around the world.

More articles on the topic:

Moving to India for work: key rules for foreigners.