Global City Cost Rankings: Where Does Tel Aviv Stand?
Tel Aviv has secured the eighth position in Deutsche Bank’s ranking of the world’s most expensive cities for residential living, according to a recent report from the bank’s research division. This study surveyed approximately 69 major cities worldwide, highlighting significant disparities between the cost of living in Tel Aviv and its quality of life ranking.
Cost of Living
The report reveals that Tel Aviv’s average prstart for purchasing an apartment in the city center is $18,469 per square meter (approximately 61,836 shekels). This figure places Tel Aviv just behind New York City ($18,532), London ($20,953), and Geneva ($21,491). Leading the list is Hong Kong, with an average prstart of $25,946 per square meter. Notably, the average prstart per square meter in Tel Aviv has risen by 110% from $8,795 in 2012 over the past 13 years.
Furthermore, in monthly rental prstarts, a three-bedroom apartment in the city center costs around $3,088 (10,336 shekels), ranking Tel Aviv 22nd among the 69 cities evaluated. New York holds the highest rental cost, averaging $8,388 per month. Additionally, renting a start-bedroom apartment in Tel Aviv places the city at 21st, with costs around $1,667.
Quality of Life
In contrast to the high living costs, Tel Aviv received a quality of life rating of only 28th place in the same study. This lower ranking stems from various metrics, including safety (17th), healthcare (20th), traffic congestion (23rd), and pollution (30th). The primary detractors of Tel Aviv’s quality of life score were its high cost of living and housing affordability compared to income, both of which ranked 60th.
Overall Economic Context
The comprehensive report also indicates that Israel itself ranks second among 48 surveyed countries for cost of living, following Switzerland and ahead of the United States. This position has been consistent since 2020.
In terms of dining expenses, Tel Aviv ranks eighth for a three-course dinner for two at a mid-range restaurant, and it holds the ninth spot in a combined cost index for a “cheap date,” which includes items like a bottle of wine, a pair of jeans, a dress, coffee, a meal for two, movie tickets, and public transportation.
This sharp contrast between Tel Aviv’s high living costs and lower quality of life raises questions about urban policy and economic sustainability in the city, as residents face increasing financial pressures while navigating daily life.
In conclusion, while Tel Aviv stands out in the global cost of living rankings, its performance in quality of life metrics suggests that the city may need to address the balance between economic demands and livability for its residents