10 cheapest cities in the world, Mumbai tops the list

The Economist Intelligence Unit (EIU) recently released its list of top 10 cheapest cities in the world, and Mumbai is ranked at number one position.  

The survey done by the EIU is based on the average cost of food items, fuel and transport in around 100 cities with New York as the base city with an index value of 100.  

Find out which other cities along with Mumbai have made it to the list and why.   

Mumbai

Rank: 1

According to the EIU survey, Mumbai delivers best value for every dollar spent. For example, cost of buying one kilogram of bread in the city is around $0.91 in comparison to Singapore, where it costs $3.36.  

Interestingly, despite petrol price rising consistently in metro cities in India, it is considered to be the cheapest in the world at $1.21 as against $2.50 in Paris, which is the second most expensive in the world, according to the survey.

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Karachi  

Rank:2

Despite being the economic capital of Pakistan, Karachi is under constant threat of terrorism which has disrupted  the overall business environment in the city.  

However, there iare a large number of expatriates in the city who say that the rentals in Karachi are not more than $400 each month, which is lowest in contrast to western cities.  

Also, a meal for two would not cost more than $6-7, which is again most affordable.

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New Delhi

Rank: 3

Delhi is popular for its affluent culture in India and it may come as a surprise to many that it is the third cheapest city across the globe.  

The north-Indian city is considered to be a place where rentals are 1/10th of what one would pay in a middle class locality in other Asian cities. 

This is despite the fact that real estate prices in the city are on an unprecedented rise.

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Damascus

Rank: 4  

Due to the ongoing geopolitical tension in Damascus--the capital city of Syria, there is constant pressure on its currency (Syrian Pound).

Due to a volatile currency, the value of goods purchased against one dollar is relatively higher than western standards.  This factor alone is strong enough to bring Damascus among the top ten cities of the world.

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Kathmandu

Rank: 5

The average yearly per capita income in Kathmandu (Capital city of Nepal) is around $120.  

Also, agricultural produce and other non-vegetarian food items do not cost much. 

Reports suggest that an average family can live a lavish life by spending only $500 each month. 

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Algiers

Rank: 6

The value of one dollar spent in the city (Algiers) is equal 79 Algerian Dinar.  

For instance, cost of travelling in a local transport is not more than $10. Education is also free in the capital city of Algeria.  

A meal for two at an inexpensive restaurant does not cost more than $5. Rentals are also not as high compared to cities in the western part of the globe..

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Bucharest

Rank: 7

Bucharest is considered the financial centre of Romania and tourists also call it the affordable version of Paris in Eastern Europe.

Cost of daily food products, transportation and other basic necessities are way below other European cities.

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Panama

Rank: 8  

Panama city is considered the fastest growing economy in Latin America. As a result, new restaurants,  realty projects have mushroomed all over the city keeping prices under control.

In a nutshell, you can live a grand life by spending less in Panama.

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Jeddah

Rank: 9  

Jeddah is the second largest city of Saudi Arabia and offers affordable housing, especially to expatriates. Cost of food items is also relatively cheaper that other Asian cities.

Riyadh

Rank: 10  

Along with Jeddah, Riyadh also offers affordable living to expatriates.

Government subsidy on most food products continue to guarantee low prices.  

The city is known for offering value for money.