Shanghai has topped the list of the most expensive cities in the world, according to a recent global lifestyle report, with Dubai being the sole Middle East city surveyed in the index.
The new Global Wealth and Lifestyle Report by Julius Baer identified Shanghai as the most expensive city, followed by London, Taipei, Hong Kong, and Singapore.
The report looks at the cost of living for wealthy individuals, considering prices of specific goods and services, including cars, hotel suites, jewelry, and residential properties among others. Generally, it noted a sharp increase in value for these items – up 7.46 percent since the report’s previous edition, owing to inflationary pressure in major economies.
Technology package registered the biggest price change, up 41 percent, followed by bicycles and lawyer fees, while health insurance costs dropped 24.4 percent.
“The enduring effects of the pandemic – still very much an ongoing crisis in some countries – combined with a complicated set of macro-economic conditions and supply chain disruptions, has caused price rises for three-quarters of the goods and services in our Lifestyle Index,” Nicolas de Skowronski, head of wealth management solutions at Julius Baer, said.
Particularly in Dubai, which fell two places to 14th out of 24 cities in the index, the cost of goods and services increased by 19 percent on average. Hotel suites recorded the highest price jump, followed by residential property.
The Middle East, in general, has recently been recording improvements in tourism and real estate activity – supported by ongoing government initiatives to spur post-pandemic recovery.
In terms of how the region’s wealthy wants to spend their money, the report showed fine dining and health as the top priority. They are also keen to spend more on leisure accommodation, which the report noted could be attributed to a pent-up demand in experiential activities post-pandemic.
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