Two years of rising property prices in Israel and falling property prices in the US, combined with a more severe recession in the US than in Israel, which contributed to the shekel's appreciation against the dollar, has resulted Tel Avivand Jerusalem surpassing New York in the rankings of the world's most expensive cities, according to a survey by global human resources company ECA International, which was published by "BusinessWeek".
ECA ranks Tel Aviv in 19th place in 2010 (up from 24th place in 2009) and Jerusalem in 22nd place (up from 27th place), whereas New York is in 29th place (down from 18th place). Tokyo is in first place, up from second place in 2009, followed by Oslo, which rose to second place from eighth.
ECA ranks 399 cities on the basis of a basket of 128 goods that includes food, daily goods, clothing, electronics, and entertainment, but not rent, utilities, and school fees, which are not typically included in a cost-of-living adjustment. It says that, in Tokyo, a kilogram of rice costs $8.47, lunch at a restaurant costs $18, and a movie ticket costs $22.
ECA describes 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 per month for a three-bedroom apartment."
As for Jerusalem, ECA says that while many enjoy a high standard of living in Jerusalem, the city remains one of the country's poorest. Mayor Nir Barkat says he hopes to revitalize Israel's capital to attract more tourists and foreign visitors.
In Tel Aviv, lunch at a restaurant costs $26, a can of beer from a grocer costs $2.54, a kilo of rice costs $4.15, one dozen eggs costs $4.65, a movie ticket costs $9.50, and a washing machine costs $867.
