Arab Today, arab today beirut becoming less affordable for expats
Last Updated : GMT 19:54:04
Arab Today, arab today
Arab Today, arab today

Beirut becoming less affordable for expats

Arab Today, arab today

Arab Today, arab today Beirut becoming less affordable for expats

Beirut - Arabstoday

In a new list of the most expensive cities for expatriates, Lebanon’s capital has outstripped Abu Dhabi as one of the least affordable metropolises in the Middle East region. According to global consultant and investment adviser Mercer, in a report issued this week, Beirut has overtaken Abu Dhabi as an expensive expat city, while Jeddah, Saudi Arabia, still ranks as the least expensive city in the region. “On the whole, most Middle Eastern cities have dropped in the ranking, mainly because price increases on goods and services have been more moderate here than in our benchmark city, New York. Slight decreases in expatriate accommodation costs were also observed in Abu Dhabi and Dubai,” said Nathalie Constantin-Métral, principal at Mercer. Beirut is now the 67th most expensive city for expats in the world, up eight places. Abu Dhabi is at 76th, down nine places. For American University of Beirut economist Jad Chaaban, Beirut’s combination of high-cost housing, food and energy render living in the city very expensive compared to the rest of the Middle East. “The most important factor is the cost of housing. There is a very limited supply of rentable apartments in Beirut. Those available are big and very expensive apartments that target wealthy individuals,” he said. “Expats demand small apartments that are between 60 and 80 square meters. Even when such an apartment is available, it would rarely cost less than $1,000 a month,” Chaaban added. He pointed out that speculation on the real estate market contributes to inflating the cost of housing for expats and locals alike. In addition to housing, he said the cost of food in Beirut is strikingly high compared to other areas in Lebanon, set aside other cities in the region. “The cost of groceries, for instance, is up to three times higher than any area outside the capital,” he highlighted. Adding to living costs, Chaaban highlighted, is inflated energy cost. In addition to individuals and businesses having to hire private generators to cover for electricity rationing, Lebanon’s obsolete public transportation renders the use of private cars necessary. “Given the high cost of gasoline and traffic jams, transportation is also a major expense,” he added. M. P., a longtime American expat who asked that his full name not be used, echoed many of the AUB economist’s analyses. “It’s the lack of renovated, affordable, middle-class housing. Lebanon’s cost of living is ruined by rent prices; Apartments in Beirut continue to rise in rent as Lebanese owners renovate or build only five-star-style luxury apartments. Or on the lower level, they’re renting apartments that haven’t seen any renovation since before the Civil War. As a result, you can pay $400 a month or $1,500 plus a month but there’s almost nothing in between,” he said. Journalist and author Claude Salhani said that “inflation in Beirut is getting out of hand with prices sky-rocketing. Add to that the tourism scare brought about by Gulf Arabs advising their citizens not to remain in Lebanon – where visitors from the oil-rich states like to spend their summers and a few billion dollars on everything from renting luxurious apartments on Beirut’s waterfront, to fancy cars, restaurants, clubs and hotels – which will further impact the economy in a negative manner.” He added with some invective: “Now top it off with the U.N. declaring the violence in Syria officially ‘a civil war’ and more tourists are likely to stay away.” Mercer’s annual Cost of Living survey reported that Tokyo was the world’s most expensive city for expatriates, pushing Luanda, Angola, down to second position, with Osaka coming in as the world’s third most expensive city, up three places from last year. Moscow remains in fourth place and Geneva in fifth. The Mercer report said Zurich and Singapore share sixth place, up one and two places respectively since 2011. Ndjamena, Chad, drops five places, but Hong Kong retains its ninth place. Constantin-Métral, who is responsible for compiling the ranking each year, said: “Deploying expatriate employees is becoming an increasingly important aspect of multinational companies’ business strategy, including expansion. But with volatile markets and stunted economic growth in many parts of the world, a keen eye on cost efficiency is essential, including on expatriate remuneration packages.” “Making sure salaries adequately reflect the difference in cost of living to the employee’s home country is important in order to attract and retain the right talent where companies need them.” Constantin-Métral said the annual survey covers 214 cities across five continents and measures the comparative cost of over 200 items in each location, including transport, food, clothing, household goods and entertainment. Often the cost of housing is the biggest expense for expatriates; it plays an important part in determining where cities are ranked, in the survey. New York is used as the benchmark city and all cities are compared against it. Currency movements are measured against the U.S. dollar. According to the report Karachi is ranked as the world’s least expensive city for expatriates (214th), less than one-third as expensive as Tokyo. The Cost of Living survey reported that recent world events, including economic and political upheavals, have affected the rankings for many regions through currency fluctuations, inflation and volatility in accommodation prices. By The Daily Star

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today beirut becoming less affordable for expats Arab Today, arab today beirut becoming less affordable for expats

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 05:26 2017 Sunday ,19 February

US natural gas market tightens

GMT 05:06 2017 Sunday ,19 February

Merkel: Euro is too low for Germany

GMT 04:58 2017 Sunday ,19 February

Swedish PM: Brexit deal in 2 years is unlikely

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum

GMT 10:20 2017 Thursday ,16 February

New Zealand's Spark rings up interim profit rise
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday