Zurich slips down list of expensive cities for the super-rich

The ranking is based on a basket of goods and services reflecting the lifestyle of the super-rich. Keystone / Matt Sayles

Zurich dropped last year from seventh to 14th place in a world ranking of most expensive cities. The ranking by private bank Julius Bär is based on cost of lifestyle for the super-rich.

In a European comparison, Zurich is only in fifth place behind London, Monaco, Paris and Milan, according to the fourth “Global Wealth and Lifestyle Report”. In all 25 cities surveyed, however, the costs of the super-rich’s high standard of living have risen sharply.

Luxury living was particularly costly in Asia. Singapore was the most expensive city for the world’s rich, followed by Shanghai and Hong Kong, with Taipei also at number eight.

The fact that Zurich has fallen down the ranking is probably due to the comparatively low inflation in Switzerland, says the report. The average price level of the Lifestyle Index across all cities increased by 6% in US dollars and 13% in local currencies.

The report is based on a basket of consumer goods and services that reflect the luxurious lifestyles of the very wealthy. Things included extend from residential property to lawyers to ladies’ handbags.

The biggest price increases are in high-demand premium consumer goods such as wine and whisky, as well as luxury cars and hospitality services. Prices for hotel suites, business class flights and fine dining have increased significantly in the wake of a marked rise in demand for travel and entertainment, according to the report.

In general, the rise in prices in the index reflect the impact of cost increases in energy, raw materials and personnel. Coupled with inflation, exchange rate fluctuations and ongoing supply chain disruptions, the result is that every industry, every company and every individual feels the impact on their purchasing power, says the report.