In terms of affordability and cost-of-living standards, a Deutsche Bank report found significant price changes over the last decade, with globalisation failing to achieve price equalisation.
This is due to various factors, including taxes, regulations, currency fluctuations, and inflation.
Deutsche Bank Research Institute senior financial researchers and macroeconomists Adrian Cox and Jim Reid said that Cape Town would also be the best city to buy a holiday home in, when factoring in scenery, climate and cost.
The researchers said that Cape Town is 15 times cheaper than Hong Kong, per square meter.
In terms of housing prices, Hong Kong has seen prices decrease by about 10% since COVID-19, but it still ranks below Zurich and Geneva.
The report highlighted that Tokyo has become more affordable than other developed cities, making it an attractive investment destination over the next decade.
On the other hand, it showed that Tel Aviv has become one of the most expensive cities, driven by a strong shekel and thriving tech and defence sectors.
It highlighted that while major financial centres offer high salaries, the cost of living can reduce disposable income.
The data also suggests that Zurich and Geneva provide the best balance between income and expenses. German cities like Munich and Frankfurt are also becoming more livable, according to the report.
The data indicates that the US appears to be at the peak of its price cycle, which could lead to a decline in pricing power in the future.
