According to the Cost of Living Index, after Brexit London unexpectedly became a cheaper city
As a result of shifts in the global economy observed over the past year, life in some very expensive cities has become somewhat cheaper. Either under the influence of changes in international politics, or due to changes in export-import proportions, or because of currency fluctuations, megacities such as London and Beijing suddenly found themselves much lower than usual in the annual Cost of Living Index compiled by the international analytical company Economist Intelligence Unit (EIU).
And since in such cases the local currency usually falls against other currencies (and inflation often rises), the main beneficiaries of changes in the cost of living are foreign specialists working in international companies. A BBC correspondent spoke with locals and foreigners living in such cities: how do they feel these changes, and what can they save on now?
LONDON
The result of the referendum on the country's exit from the European Union immediately affected the pound sterling exchange rate – so much so that London, which for a very long time was among the most expensive capitals to live in, dropped by as many as 18 places in the Economist Intelligence Unit index in just one year.
Tourists from other countries flooded the British capital to buy things that had now become cheaper for them. According to some estimates, the level of foreign spending in London increased by more than 36% compared to the previous year. However, since many other currencies strengthened against the pound, the cost of imported goods for Britons rose, notes Ian Wright, founder of the international moving company MoverDB.com.
Experts predict that as a result of Brexit, prices for important imported goods such as fruits and vegetables are likely to rise by about 8%. Despite this, there are plenty of opportunities to make life in the British capital more affordable for the average wallet. This primarily concerns housing. It should be noted that, as a rule, renting and buying property in south and east London is cheaper than in the north or west.
Wright, a Canadian by origin, says London is a rather strange city in some ways: "Here, social housing for the poor can be right next to houses worth many millions of pounds." Wright himself lives in the Abbey Wood area in southeast London, where, according to him, you can rent a house for 1,000 pounds a month – or buy one for about 325,000 pounds. "This area is not brimming with entertainment opportunities today, but there are many parks and the ruins of an ancient abbey – and all of this is free," he optimistically notes.
Among other options that may be within your budget are Leyton, near the Olympic Park in east London, and East Ham, south of Leyton. East Croydon in the south of the capital is undergoing a major redevelopment, with a new shopping and entertainment complex opening soon, but you can still find housing to rent for as little as 500 pounds a month.
Although anti-immigrant sentiment has become noticeable in Britain today, Wright assures that this does not apply to the country's capital, which remains multinational, open, and tolerant. "In London, there are far fewer purely ethnic enclaves than, say, in US cities, so expats and immigrants from different countries live side by side with locals. This, in my opinion, is one of the most pleasant features of this city," he concludes.
BEIJING
Many Chinese cities lost their high positions in the EIU index – some dropped by more than 10 places, such as Beijing. Although the EIU document does not mention the reasons, according to some sources this happened due to a decline in demand for Chinese exports and the weakening of the yuan against the dollar.
Much like in London, the degree of housing affordability depends on how far from the city center you are willing to live. A two-bedroom apartment in the Tongzhou district, 22 km east of the capital's center, can be rented for 2,500 yuan per month.
"But as a foreigner, you'd better find a room closer to the center – for about 4,000 yuan, which is quite possible even near trendy areas like Sanlitun or Gulou," says Om Buffalo, an American currently living in Beijing. Generally speaking, the southern and western districts of Beijing are cheaper than the northern and eastern ones.
Another way to save money is to use the metro instead of taxis. "For medium and long distances, taxis in Beijing are much more expensive than the metro, and you'll spend more time traveling," notes Josh Ong, director of global marketing and communications at Beijing-based Cheetah Mobile. "At first, using the metro is scary, especially during rush hour, but through experience you'll find the optimal route for yourself."
He also advises eating like locals and using the website dianping.com to find places where real Beijingers go to eat: "In Beijing, Western cuisine is expensive. But keep in mind: eateries with delicious noodles and great dumpling places are literally around the corner."
LAGOS
Nigeria's former capital, like Beijing, dropped 16 places in the Economist Intelligence Unit list – primarily due to falling oil prices, the country's main export commodity. Foreigners working here should seemingly be pleased with this. But as Hasim Zain, who came here from the US and represents the expat community InterNations, says, for locals prices are rising, and along with this, crime is increasing, and thefts are becoming more frequent. But locals believe that as long as you use common sense, you can live.
"I feel at home in this country because of the mentality of Nigerians. They don't lose heart, they are ready to achieve their goals, and they always find time and opportunity to have fun," says Zain. Moreover, "Lagos knows how to throw a real party like nowhere else, seven days a week!"
Lagos is naturally divided into two parts – the one on the mainland and the one on the islands. Most expats prefer the island part, especially the Victoria Island area, 17 km south of the city center, and the equally prestigious Ikoyi, built by the British during colonial rule. In general, those who work in actual production, rather than in the "Nigerian letter" business, usually settle in the mainland part of the city. There, according to Hashim Zain, the best areas are Ilupeju and Ikeja. They are safer than others and have a well-developed and reliably functioning infrastructure.
MEXICO CITY
The capital of Mexico has always been considered an affordable city in terms of cost of living, and this year Mexico City dropped another nine points in the EIU Index, now ranking 82nd among 132 cities in the Economist list.
Over the past year, the national currency continued to weaken, inflation rose along with prices (including the fare for city buses, which caused protests). So in Mexico City, it's wiser to walk to the metro than to take the bus, says Lauren Cocking, a London native living in the Mexican capital who runs a travel blog. And late in the evening, she recommends using Uber: "It's often cheaper than a regular taxi and safer than public transport – especially late at night."
Shopping at local markets (tianguis) is cheaper than in large supermarkets. "The difference in prices will amaze you," notes Cocking. "I think local food is what makes it worth living here."
Most expats, according to her, settle in the Roma and Condesa neighborhoods, but there it's hard to feel the spirit of the real Mexico City. "I recommend looking for housing in such clearly undervalued places as Narvarte or Del Valle, south of the city center. They are more residential and have less risk of damage in case of an earthquake. The same can be said for southern areas like Copilco and Coyoacán."
"Coyoacán is very beautiful, with colonial-style buildings, cozy parks, and quiet streets. On the lively central square, there are many opportunities to try local food and have fun in general," says Natalie B., born in Mexico City. She works for a travel agency that introduces visitors to local cuisine. Like Cocking, she also recommends Narvarte, which was actively built and grew between 1940 and 1970. Many original buildings have survived to this day. It's a quiet residential area with a family atmosphere.
BUENOS AIRES
Buenos Aires (along with London) became this year's record holder for the deepest drop in the EIU Index. The fragility of the Argentine economy can be blamed for its fall of 20 places.
However, locals have long been accustomed to price fluctuations, says Madi Lang, owner of Buenos Aires Cultural Concierge, a US native who has lived in Buenos Aires for 10 years. "The local economy is something crazy," she says. "But Argentines take it calmly – the main thing is to have beef for the grill."
Lola Black, a tango teacher and InterNations representative, describes Buenos Aires as "a big city atmosphere, but quite relaxed, with a mixed Latin-European chic."
To fully experience the vibes of the Argentine capital, expats are recommended to live in Puerto Madero, 4 km southeast of the city center. It's a clean, prestigious area located close to the ocean, on the shore of the Rio de la Plata. A second option is San Telmo with its historic colonial-era buildings (but security is worse there).
Those who come to Buenos Aires for its tango should settle in Almagro. "It's an ideal place because of its super-central location. It's very close to the touristy and fashionable Palermo, and the business center is very near," says Lang. "This area is full of bars, restaurants, milongas (tango dance halls), and live music venues."
The Argentine capital has many parks and squares, and plenty of places for entertainment. "And at noon, it's nice to just sit at a table in the square, sipping mate tea (our traditional drink) and watching passersby," admits Madi Lang.