Cities in Spain top Paris, London as expats seek cheaper housing

LONDON, Paris, Milan and Berlin are known around the world for their culture, history and beauty. Now they have another trait in common: Expats say there are better places to be.

The four European cities earned some of the lowest rankings in a survey of more than 12,000 people by InterNations, a Munich-based expat network with around five million members. Cost of living was a major factor weighing down the cities’ scores, which also took into consideration quality of life, ease of settling in and working conditions.

In the survey, expats tended to prefer warmer climates with affordable housing and friendly locals. Four Spanish cities – Malaga, Alicante, Valencia and Madrid – were among the top 10 destinations.

The takeaways mirror trends observed during the pandemic as digital nomads sought more relaxed locations to work, away from large busy metropolises. But as more employees have been pushed to return to offices, they have been hit by higher living expenses in large cities.

Take London. The city ranked 42 out of 49 cities tracked, as expats found their incomes weren’t high enough to allow them a comfortable life. To maintain the same standard of living as in 2020, London residents would need to spend 25 per cent more a week, according to the charity Trust of London. Meanwhile, London salaries have grown only 5 per cent in that time frame, data from UK research centre Institute for Fiscal Studies show.

Abu Dhabi, Mexico City, Kuala Lumpur and Bangkok, on the other end, scored very well. Expats said they felt well paid for their work and happy with their social lives in those cities.