View Full Version : Oslo: Most Expensive City in the World

Saturday, March 5th, 2005, 02:20 PM

Oslo most expensive

Norway's capital has done it again, winning the dubious honor of being the most expensive city in the world, according to the latest report from Swiss bank UBS.
The annual UBS Prices and Earnings survey ranks Oslo, Copenhagen and Tokyo as the three most expensive cities, but London would have pushed Oslo down to the number two spot if rents had been factored into the equation.

Earnings are also top in the Scandinavian region to compensate for high costs, but with taxes and social security contributions also hefty in Scandinavia, Oslo and Copenhagen have moved down in the overall ranking of net wages.

A weakening US dollar has accounted for many of the major changes on the UBS list, with net purchasing power now strongest in Swiss cities and Luxembourg, Los Angeles and Miami.

Oslo workers need to work 18 minutes to pay for a local Big Mac, while on the other end of the scale Nairobi employees need to put in 181 minutes to enjoy the same imported junk-food meal.

A kilo (2.2 lbs) of bread costs the average Oslo worker 12 minutes to earn, compared to Frankfurt's 6 and Nairobi's 44. A kilo of rice is a bit cheaper, costing 11 minutes of labor in Oslo, but just 5 in Copenhagen and a whopping 89 in Mumbai.

"On a global comparison, people now have to work one or two minutes less on average than in 2003 to earn a Big Mac or a kilo of rice or bread," the UBS report said.

Saturday, March 5th, 2005, 02:22 PM

Norway rich and expensive

You've heard it before and the statistics bear it out again - prices in Norway are painfully steep, but earnings are high enough to take it.
Norwegian prices are 30 percent above the European Union average, but the gross national product (GNP) per inhabitant is also 35 percent above the EU average - so the prices only hurt a lot for the average tourist.

Along with Switzerland and Denmark, Norway had a 2003 price level 30 percent above the then 15-member EU according to purchasing power figures released Wednesday by Statistics Norway (SSB).

Products and services that raised Norwegian price levels included alcohol, tobacco, hotels, food and transport.

Only Luxembourg had a higher GNP per inhabitant than Norway.

Saturday, March 5th, 2005, 02:24 PM

Most room in Europe

Norwegians have come a long way since the days of post-war poverty, and now have the most elbow room in Europe.
Apartments have grown gradually larger for the past 60 years, but this trend seems to be reversing finally, at least in city centers, newspaper Avis1 reports.

According to figures from the Norwegian Building Research Institute (NBI), the average Norwegian has 52 square meters (560 sq. ft.) of indoor living space, up from just 27 square meters in 1967.

The first construction boom began in the 50s to meet a desperate need for better and roomier homes and it was not until the 70s before consumers began to demand better standards.

In the 80s Norway saw its first post-war housing glut, with property being difficult to sell. Construction and property prices began to spiral upwards in the late 90s.

In the past two years Oslo has seen record construction, without expanding its boundaries.

"In the center of Oslo apartments are steadily getting smaller. The large homes and row houses around the country are what is pulling up the (national) average," said NBI researcher Jon Guttu.

Tuesday, January 31st, 2006, 04:08 PM
After 14 years ranked as the most expensive city in the world for expatriates, Tokyo has been knocked off the top spot by Norway's capital Oslo, a survey showed on Tuesday.

The biannual survey by the Economist Intelligence Unit (EIU) compares the cost of goods and services in dollar terms. The rise of Oslo and other European cities partly reflects the long-term under performance of the U.S. currency.

Iceland's capital Reykjavík jumped to third place ahead of Japan's Osaka and eight of the top 10 cities are in Europe. New York, the highest-ranked U.S. city, slipped to 27th place.

"The displacement of Tokyo comes as little surprise. A gradually weakening yen has been compounded by years of low inflation and deflation in the Japanese economy," the EIU said.

"Norway has seen strong economic growth following a recovery in 2004, enjoying high consumer confidence, rampant investment and still-low interest rates."

Several eastern European countries also became more expensive. The main cities in Serbia and Montenegro, Romania, Ukraine, Poland, the Czech Republic and Turkey all saw a relative increase of more than 5 percent in the cost of living.

In Latin America, the two biggest jumps came in Brazil, with Rio de Janeiro and Sao Paulo climbing 22 places to joint 87th on the back of a 25 percent rise in the currency and rising consumer prices.

Iran's capital Tehran, the city ousted from top spot by Tokyo 14 years ago after its currency was revalued, remains the cheapest of the 130 cities ranked worldwide by the EIU.

10 Most Expensive Cities:

Oslo - Norway
Tokyo - Japan
Reykjavík - Iceland
Osaka Kobe - Japan
Paris - France
Copenhagen - Denmark
London, United Kingdom
Zürich - Switzerland
Genf - Switzerland
Helsinki - Finland


Tuesday, January 31st, 2006, 04:38 PM
Helsinki in the top ten? I'm not surprised.:coffee:

Tuesday, January 31st, 2006, 05:33 PM
More expensive than Tokyo - that's impressive. I always thought that no other city could beat Japan's capital with its interesting prizes for apples ($ 20) and things like that.

Tuesday, January 31st, 2006, 07:04 PM
Hmmm...and I thought Innsbruck was expensive...with its €3.80 for 1/2 litre of beer... :coffee:

Tuesday, January 31st, 2006, 07:12 PM
"Norway has seen strong economic growth following a recovery in 2004, enjoying high consumer confidence, rampant investment and still-low interest rates."

Then why is Oslo the most expensive city?

I think I am missing something.

Wednesday, February 1st, 2006, 10:09 AM
The stronger your countries economy the more expensive your countries goods and services are going to be when compared to a country with a weaker economy. For example goods in Italy are bound to be more expensive than in Pakistan for Italy’s economy is much stronger. Don’t think it can be put into any simpler terms then that.

Wednesday, February 1st, 2006, 10:39 AM
Hmmm...and I thought Innsbruck was expensive...with its €3.80 for 1/2 litre of beer... :coffee:

Thats positively a rebate, €5 is more or less minimum...

Thursday, August 10th, 2006, 06:42 PM
Oslo has not only been named the most expensive city in the world to live in again, the purchasing power of residents has allegedly fallen.

The Swiss Bank USB's latest comparison of price levels and purchasing power in 71 world capitals and major cities places Oslo at the top of expensive cities. But the real news is that the purchasing power of Oslo residents is as low as 15th.

The survey finds four European cities plus Tokyo as the world's priciest. Salaries are highest in Scandinavia, Switzerland and the USA. Oslo, London, Copenhagen, Zurich and Tokyo take the top five spots as the world's most expensive cities.

Asian workers spend more time on the job than the rest of the world, striving on average nearly 50 days more a year than their counterparts in Western Europe.

Oslo had the most expensive 'shopping basket' of 122 set products and services, while especially high housing and living expenses in London and New York are noted.

Swiss cities Zurich and Geneva kept their status as spots of highest purchasing power. In contrast to most other countries, where teachers and bus drivers earn below the average, such public sector jobs are relatively well paid in Switzerland and Scandinavia.

Norwegian experts were surprised and apparently puzzled by the results.

"It is strange that Oslo ends as low (in purchasing power) as 15th place - I would have expected to be significantly higher on the list," Professor of Social Economics Steinar Holden at the University of Oslo told newspaper VG.

He was especially surprised that German cities such as Frankfurt, Munich and Berlin were above Oslo on this list. IN contrast to, for example, Ireland, the living standard in Germany is supposed to have declined over the past 15-20 years.

"It is very surprising that the residents of these German cities have more purchasing power than those in Oslo," Holden said.

Source (http://www.aftenposten.no/english/local/article1416986.ece)