There has been a dramatic rise in the prices of goods worldwide. Housing has become much more expensive than before. In fact, the average prices of goods and services have increased by 7.4% over the past year.
The Economist Intelligence Unit (EIU) recently released a report on housing prices worldwide for 2023, which shows a significant increase, with an average rise of 2.9% over the past five years.
However, not every region has been affected by these rising prices. The report examined 173 countries and analyzed the prices of more than 200 goods and services, including food, clothing, rents, and travel expenses.
When compared to the global index, some cities around the world are still relatively affordable. Cities like Singapore and Zurich are considered very expensive, while other cities are seen as more affordable in comparison..
Many cities in Asia, for example, are considered affordable, while 46 out of 58 cities have dropped in rankings due to economic recovery.
Some cities are surprisingly cheaper compared to their more expensive neighbors. These cities offer facilities similar to those of expensive cities at a lower cost.
We spoke to residents of these cities and recent tourists who have visited, and who found these cities to be cheaper compared to other cities in their region, according to the EIU report index.
These residents and tourists explained why certain cities seem more affordable and how travel costs can be managed effectively.
Lisbon, Portugal
According to the EIU rankings, Lisbon has become a hotspot for “digital nomads” in recent years as the least expensive city in Western Europe.
Digital nomads are people, often freelancers, who can temporarily obtain a visa for a country and reside there while continuing to work online, without the necessity of going to an office, market, or institution in that country. They are also known as freelancers, and the visas they are granted typically have a specific duration.
Lisbon, in particular, became a popular destination for digital nomads after the city introduced a policy in 2022 to issue visas for digital nomads for one to two years. This led to a surge in arrivals.
According to the travel expenses website Expectistan, the city is up to 56% cheaper compared to other cities, making it a preferred location for nomads.
Mercedes Zach of Esptickets says that Lisbon was at the top of her list, and she eventually succeeded in visiting the city that summer. She describes it as affordable yet upscale. It is a very beautiful, friendly, and lively place.
Mercedes also advises not to miss visiting the neighboring area of Bairro Alto when in Lisbon, where you can experience street art. You can enjoy the views of the city and sunsets with locals.
She also enjoyed walking through Central Park for free, where you can explore the city’s Roman-era ruins.
After enjoying the Fado music, she recommends heading to the budget-friendly spot Tasca do Chico. According to her, you can enjoy live music shows for free. She suggests visiting on Mondays or Wednesdays when there are more local singers, and the crowds are smaller.
Buenos Aires, Argentina
In the annual rankings, despite the inflation, rising costs, and currency depreciation, Buenos Aires, Argentina, ranks 163rd out of 173 cities.
Currently, the biggest beneficiary of the currency depreciation is the US dollar, as people now prefer to save in this currency.
Tourists take advantage of the “blue dollar” exchange rate through Western Union.
Author and digital nomad Josephine Remo Funderp says that the cost of living here has changed drastically compared to five years ago. According to her, one thing she has learned is that it’s better to pay in cash rather than using foreign credit cards.
She explains that this is one way to reduce your expenses and find savings. She notes that rent and food are very cheap here. Instead of returning to Europe, she is now planning to stay here for six months.
The surrounding areas are even cheaper. Travel blogger Alex Trimbath, who stayed in the suburban area of San Telmo, describes it as an affordable and upscale location.
On Sundays, even cheaper markets open up here. You can enjoy better food and visit more places while spending less.
He is now planning to attend a tango show here to find out how enjoyable the experience is.
Toronto Canada
Major cities in the United States, such as New York and Los Angeles, are still included in the list of the top ten most expensive cities, while cities in the neighboring country of Canada are still considered affordable. Among all cities in Canada, Toronto is the most affordable, ranking 27th in the global rankings.
In addition to being a very budget-friendly city, Toronto is also considered a very safe and family-friendly destination, where one can live affordably.
Toronto resident Stephen Siccarli says that a boat trip on Lake Ontario offers great views of some beautiful places. In addition to the Hockey Hall of Fame, the CN Tower is also worth visiting, where even more stunning views can be enjoyed.
Toronto is a very green and vibrant city, often referred to as a “city within a park.”
Another resident of Toronto, Natalia Boya, mentions that she enjoys walking around after leaving her apartment. She loves visiting places like High Park, Trinity Bellwoods, and Toronto Island Park.
Inflation is also noticeable here. Various types of food are available at different price points. Like New York, Toronto has many restaurants, but Natalia says the cost of living here is not as high.
TOKYO JAPAN
Tokyo is still considered Japan’s most expensive city. However, it is cheaper compared to other Asian cities like Singapore and Hong Kong.
Currently, Japan is making its cities more attractive to tourists by improving the value of its currency, the yen, and addressing other economic challenges. This is to ensure that tourists do not cancel their plans to visit due to high costs.
After the pandemic, Japan’s shift in policy has made the country an appealing destination for tourism.
Tokyo businessman Masa Yamamoto says that Tokyo is now cheaper than New York, London, and Singapore. According to him, life in Tokyo has become more appealing.
He explains that the opportunities available in the city also help keep the cost of living under control.
Masa advises tourists that they can travel long distances around the city for free and enjoy scenic views of beautiful spots.
He mentions that various types of fruits and dates are available here.
He also points out the Mori Art Museum and the adjacent Tokyo City View, saying that visitors can enjoy stunning views of the city and the sea with minimal expenses.
