Expensive lunch. Tel Aviv
צילום: דנה קופל
Israeli cities more expensive than Manhattan?
Tel Aviv, Jerusalem rank higher than New York City in cost of living for expats, based on annual BusinessWeek survey
Tel Aviv might be congested and Jerusalem's alleys might resemble a third world county, but surprisingly both cities have ranked higher in the cost of living than New York City.
The financial magazine BusinessWeek published its annual Most Expensive Cities index, in which it compares the cost of living in 399 cities across the globe.
The list is based on a survey conducted by ECA International between September 2009 and March 2010, which compared the prices of 128 products, both imported and local, including clothing, food, electronics and entertainment.
The survey checked the cost of living for expatriates working in foreign countries, and did not take under consideration rental prices, public services and tuition, which are usually not included among the expenses of foreign citizens.
In the ranking published last year, New York took at a higher spot than Israeli cities: The Big Apple ranked 18th, while Tel Aviv ranked 24 and Jerusalem 27.
However, in this year's ranking the tide shifted, as Tel Aviv leaped to 19th place and Jerusalem following closely at 22. New York, on the other hand, dropped past the Israeli cities and settled in the 19th place.
According to the report, lunch at a restaurant in Tel Aviv costs $26 (NIS 100) on average, compared with $23 (NIS 88) in New York
Twelve eggs would cost the foreign citizen $4.65 (NIS 18) in Tel Aviv, while in New York he would pay only $2.96 (NIS 11.5).
A laundry machine would leave a hole in the pocket of $867 (NIS 3,345) in Tel Aviv, and a slightly smaller hole of $837 (NIS 3,228) in New York.
BuisnessWeek defined Tel Aviv as "Israel’s richest and most expensive city. While daily expenses are high, the average rents are lower than in many other cities: about $1,440 (NIS 5,554) per month for a three-bedroom apartment."
As for Jerusalem, the magazine wrote: "Many enjoy a high standard of living in Jerusalem, but the city remains one of the country’s poorest."
The reason for the higher ranking of Israeli cities on this year's index is explained by the relative decrease of the dollar compared to the shekel.
Japan experienced a similar trend – the yen's strengthening against the dollar made Tokyo the most expensive city in the world, after being ranked second in 2009.
