- published on 1/22/2025
- 4min
Top 5 most expensive cities in Europe
Every year, Mercer’s Cost of Living City Index ranks different cities in Europe to identify which is the most expensive for international workers.
This ranking takes into account many different factors, including the cost of food, housing and education, to analyse a city's affordability and general cost of living. Known for their stunning natural landscapes, strong career opportunities and high quality of life, cities in Switzerland consistently rank as some of the most expensive locations in Europe.
Continue reading to discover which cities in Europe ranked highest on this list in 2024 and look at why in more detail.
1. Zurich
Situated in north-eastern Switzerland and with a population of over 420,000 people, Zurich has again ranked top for most expensive European countries in Mercer’s Cost of Living City Index 2024, and third overall.[1]
A major factor that contributes to this is the cost of housing in Zurich. For example, the average price of an apartment here is €13,500 psqm according to Statista, the second highest in Europe behind Geneva.[2]
An important reason why Zurich could be considered an expensive location is because it is renowned as a vital financial hub, with plenty of job opportunities for expats in areas such as banking, wealth management and insurance.
It is known for its sleek and clean transport system, which includes a funicular, buses, trams and a light rail system. Zurich also has the largest international airport in the country, which offers travel to more than 70 countries across the world.
2. Geneva
Next up is Geneva, which came 2nd in Mercer’s list of most expensive places in Europe for international workers.[3]
Located near the border with France, Geneva has a population of 200,000 people and a strong reputation as a centre for finance and diplomacy. It has a reliable and modern transport system that offers convenient travel for residents across the city, comprising of trams, buses and an international airport not far from the city centre.
One of the biggest appeals about Geneva for expats is that many large international organisations have offices here. For example, there are plenty of career opportunities for workers in industries such as watchmaking, engineering and banking.
Geneva’s beautiful surroundings are another reason why it is a sought after location. In their spare time, expats can visit local beauty spots such as the Monts du Genevois mountains, partake in water sports on Lake Geneva, or walk through one of the city’s many green spaces.
3. Basel
Basel also makes it on Mercer’s list at number three for Europe, and is best known for its modern architecture, thriving art scene and its delicious food.[4]
The city is nestled between France and Germany on the River Rhine, and its official languages are French and Swiss German. Its proximity to these other major European countries means Basel has become a major commercial and transport hub.
It’s important to note for those looking to relocate here for work that the key industries in Basel include pharmaceutical & chemical, construction and education. The city is also home to the prestigious University of Basel, which is the oldest university in Switzerland.
Additionally, Bern can be considered expensive because it ranks fifth in Oxford Economics’ best cities for quality of life in 2024.[5]This index looks at different factors such as work-life balance, healthcare and safety in order to determine the quality it offers.
4. Bern
The de facto capital of Switzerland, Bern is a Swiss German speaking city situated on the River Aare and was voted the fourth most expensive city in Europe.[6]
Home to the country’s federal government, public administration and civic job opportunities are prominent here. Other core industries here include healthcare, finance and manufacturing, with many international businesses based in this location.
Bern also has the fifth highest rental prices in Europe and competition for housing is steep, with an apartment costing on average €10,400 psqm.[7] Some of the most popular neighbourhoods for expats in this city incorporate Kirchenfeld in the Old Town, and Länggasse, where the University of Bern is situated.
Bern also ranked as one of the best cities for quality of life in Oxford Economics’ Global Cities Index 2024 at number 5. [8]The city’s strong economy, excellent infrastructure and wealth of job opportunities illustrate why it ranks so highly in this index.
5. London
London has also ranked as one of the costliest places to live in Europe, coming at number five in Mercer’s Index. The city has also more than doubled in its overall rankings to reach number eight, having ranked 17th in 2023.[9]
In the Index, it is noted that the cost of oil in London has jumped by a large 48.3%, while the price of a haircut increased by 7.2% compared to 2023.[10] Demand for housing is also high in the capital, with rental prices going up by 4%, contributing to the overall high cost of living.[11]
The capital of England is an important financial centre in Europe, as well as a bustling hub for fashion, the arts and engineering. This helps to explain why it was found by the Stepstone Group, the Boston Consulting Group and the Network to be the top destination globally that international workers has considered relocating to.[12]
Another draw of the capital is its extensive transport system, which consists of six major airports, trams, overground rail, and an underground train network known locally as “the Tube”. This provides convenient and efficient travel for expats to travel around London, as well as to international destinations.
Find out more about what living in the UK is like for expats by looking at our blog here.
