The Latin Business Chronicle reports that Caracas, Venezuela has replaced Sao Paulo as the most expensive rental market in Latin America for foreign executives.
Using New York as the base city, with a score of 100, Caracas got 68 points and ranks 18 worldwide. While less expensive than New York, that makes the Venezuelan capital more expensive than cities like Copenhagen and Guangzhou in China. In September, Caracas ranked 22.
Some other cities mentioned in the article, and ordered here from most to least expensive, are:
- Bogota, Colombia: Bogota’s score declined from 66.1 points in September to 58 points in February, but it’s still the most expensive city in Latin America for renters, and is more expensive than cities like Dublin, Madrid and Amsterdam.
- Sao Paulo, Brazil and Rio de Janeiro, Brazil: Sao Paulo, formerly the most expensive city in Latin America, saw its score drop sharply from 76.1 points in September to 53.4 points. Similarly, Rio de Janeiro has dropped from 70.8 points to 49.4 points in February. Sao Paulo is more expensive than cities like Sydney, Athens and Tapei, while renting in Rio costs more than cities like Frankfurt, Brussels and Oslo.
- Mexico City, Mexico: Mexico City declined its score from 51.2 points to 37.5 points and fell to 49th place from its previous rank of 38. Mexico City is only more expensive than Johannesburg among the top 50 expat cities, but less so than cities like Toronto, Stockholm and Prague.
- Buenos Aires, Argentina: Argentina’s capital Buenos Aires kept its score of 42 points, but moved up from 47th to 42nd place on the ranking.
According to Marie-Laurence Sépède, senior associate and research manager at Mercer, much of the decline in the cost of living in Mexico and Brazil can be attributed to currency fluctuations that make Mexico and Brazil more affordable for expats with foreign currency. Currencies like the Brazilian real and Mexican peso have lost more than 30 percent in value against the dollar since September last year.