Luxury living comes at a different price around the world. Here’s why some cities became even more expensive while others lost ground this year.
1/10SINGAPORE: Ranked no. 1, and has held this position consistently for the past four years. The one year it wasn’t on top was 2022, when Shanghai held the No. 1 spot. Singapore’s dominance is driven by the heaviest-weighted index items (residential property and cars) commanding the highest prices globally, compounded by a strong Singapore dollar that pushed local prices up in USD terms even though local currency price changes stayed muted. The report frames this as more than pricing, it reflects Singapore’s political stability and economic resilience, making it a “safe haven” magnet for wealth even amid global turbulence.(Image: Wikimedia commons)
2/10ZURICH: Ranked no. 2, climbing three places from 5th. The report is explicit that this rise was not driven by local inflation, no single category rose more than 8% in Swiss francs. Instead, it was almost entirely a currency story: the Swiss franc’s appreciation against the USD inflated Zurich’s dollar-denominated ranking, while Swiss residents themselves barely felt the change, since the franc’s strength is treated as a byproduct of Switzerland’s political and financial stability. This is Zurich’s first time at ranked on No. 2 since 2022, it held 7th in 2022, fell out of the top ten in 2023, then returned at 6th in 2024 and 5th in 2025; London occupied 2nd place in 2025. (Image: Wikimedia commons)
3/10MONACO: Ranked no. 3, entering the top three for the first time. The report attributes this to two compounding factors: Monaco already has the single highest residential property prices in the entire 25-city index, and this year that was amplified by the euro’s relative strength, inflating the principality’s dollar-based total cost of living beyond what local price growth alone would suggest. This is Monaco’s first time at No. 3, it held 10th in 2022, 6th in 2023, 5th in 2024, and 4th in 2025; Hong Kong occupied 3rd place in 2025. (Image: Wikimedia commons)
4/10HONG KONG: Ranked no. 4, pushed down one place, displaced specifically by Monaco’s rise into the top three rather than any decline of its own. The report doesn’t give a standalone explanation for Hong Kong’s position; it’s mentioned mainly in the context of losing ground to Monaco, and separately noted as a beneficiary of APAC’s broader wealth-hub dynamics (having overtaken Switzerland as the world’s largest cross-border wealth hub per BCG research). Hong Kong returns to 4th place, a rank it last held in 2022; in between, it moved to 3rd in 2023, 2nd in 2024, and 3rd again in 2025, when Monaco held 4th. (Image: Wikimedia commons)
5/10LONDON: Ranked no. 5, dropping from 2nd. The report is specific here: London was a close contender for the top spot in 2025, but this year the British pound moved in a similar trajectory to the weakening US dollar, meaning London’s USD-converted prices rose far less than currency-boosted rivals like Zurich or Monaco. Crucially, the report flags this as misleading: London residents still faced real domestic price increases of around 3% in GBP, so the drop in ranking doesn’t reflect improved local affordability. This is London’s first time at No. 5, it held 2nd in 2022, 4th in 2023, 3rd in 2024, and 2nd again in 2025; Zurich occupied 5th place in 2025. (Image: Wikimedia commons)
6/10SHANGHAI: Ranked no. 6, unchanged from 2025, its second consecutive year holding this rank. Notably, Shanghai was the world’s most expensive city in 2022 before falling steadily over subsequent years, ranking 2nd in 2023 and 4th in 2024, before settling at 6th in both 2025 and 2026. Its position this year ties into broader APAC trends, with AI- and semiconductor-driven wealth flows rejuvenating cities such as Singapore, Hong Kong, Shanghai, and Sydney. (Image: Wikimedia commons)
7/10PARIS: Ranked no. 7, up two places from 9th. Paris held 8th place for three consecutive years prior, 2022, 2023, and 2024. Its movement this year sits within the report’s broader observation that most European cities climbed the rankings, driven by regional currency strength. This is Paris’s first time at No. 7; Dubai occupied that spot in 2025. (Image: Wikimedia commons)
8/10SYDNEY: Ranked no. 8, this year’s single biggest climber, jumping six places. The report attributes this to two combined forces: a strong Australian dollar (consistent with the currency theme dominating this year’s index) and, uniquely for Sydney, its geographic isolation, which raises the cost of importing premium goods and directly elevates its ranking beyond what currency alone would explain. This is Sydney’s first time at No. 8; New York occupied that spot in 2025. (Image: Wikimedia commons)
9/10MILAN: Ranked no. 9, up one place from 10th. Milan held 10th place in both 2024 and 2025, per the top-ten rankings evolution table, before rising one spot this year. This is Milan’s first time at No. 9; Paris occupied that spot in 2025. (Image: Wikimedia commons)
10/10BANGKOK: Ranked no. 10, up from 11th in 2025, marking its first appearance in the top ten based on the report’s rankings evolution table, which shows no prior top-ten presence for Bangkok in 2022–2025. Milan occupied 10th place in 2025. ((Image: Wikimedia commons)
