Expats living in Italy reap the benefits as the cost of living drops
- Expats living abroad are better off in Italy where the price of basic items has fallen
- UK residents looking to move to foreign climes should consider Dubai, where house prices have dropped by over 35%
Expats living in Italy have seen the price for basic shopping list items drop and are able to get more for their money
than those living in other top expat destinations, according to research by Alliance & Leicester International. However,
while the cost of living fell in some countries, house prices in all top expat destinations fell - with those living in
Asia and the Middle East experiencing the sharpest decreases.
Out of the countries surveyed, the results found that expats already living abroad are better off in Italy where the
costs for all five basic items have dropped and house prices only fell marginally by 1.5% year on year. At the other extreme,
Brits in Florida suffered the most as prices increased for all items, with petrol costs increasing by more than 200%. In
addition, France saw prices for petrol and beer drop, but saw two of the highest rises in the price of coffee and water.
However, for UK citizens looking to move abroad, Dubai appears to be the best option. Whilst prices have increased in this
Gulf country, with water and beer being the two sharpest increases, house prices have fallen by over 35%, making it a more
attractive option for would-be expats.
The research looked at average costs of a cup of coffee, litre of petrol, bottle of water, bottle of beer and a litre of
milk, with the biggest percentage increases and decreases over the period from October 2008 to July 2009.
Highest scoring expat destinations for biggest increases and decreases:
| Country |
House Prices |
Litre of Petrol |
Cup of Coffee |
Bottle of Water |
Bottle of Beer |
Litre of Milk |
| Australia |
-2.24% |
-26% |
+38% |
+30% |
+163% |
-35% |
| Dubai |
-35.31% |
+16% |
+16% |
+320% |
+125% |
+17% |
| Florida |
-3.31% |
+208% |
+35% |
+26% |
+5% |
+14% |
| France |
-10.41% |
-8% |
+207% |
+640% |
-51% |
+25% |
| Hong Kong |
-16.14% |
-46% |
-67% |
-15% |
-86% |
+135% |
| Italy |
-1.5% |
-10% |
-30% |
-52% |
-65% |
-15% |
| New Zealand |
-6.33% |
+22% |
+46% |
-21% |
+11% |
-11% |
| Singapore |
-22.7% |
-7% |
-71% |
-27% |
+14.5% |
+128% |
| South Africa |
-8.3% |
14% |
-47% |
+83% |
+174% |
-22.5% |
| Spain |
-7.24% |
-10% |
+59% |
+95% |
+59% |
+25% |
| UK |
-4.54% |
-20% |
Same |
-7% |
+30% |
+28% |
| Overall* |
100% |
-69% |
+61% |
+53% |
+54% |
+54% |
The UK by comparison, came relatively near the middle of the table, with prices for beer and milk rising, petrol and water
decreasing and coffee staying the same.
However expats living in Hong Kong should think twice about moving house, as although prices for beer, coffee and water
have all dropped, house prices have also fallen by over 16%, making it a less attractive destination for those looking to
move in any direction on the property ladder.
Simon Nuttall, Acting Managing Director for Alliance & Leicester International, commented:
“Expats all across the world have probably been affected in some way by the global recession; however the data
from this snapshot survey indicates significant variations between expat destinations. Unsurprisingly house prices have
dropped everywhere, more significantly in countries such as Dubai and Singapore. Other countries have seen marginal drops and
this, combined with decreases in the cost of basic items, means that they are more attractive destinations for would-be
expats.
“The cost of both house prices as well as basic items can be important factors for expats living abroad and while
every country has unfortunately seen a drop in house prices, some expats will be able to at least make the most of lower
costs for basic items, which will help improve affordability and quality of life.
“Using a savings bank such as ALIL is ideal in the current climate, as not only can expats protect their savings
from local currency fluctuation, but they can also be safe in the knowledge that they can access their savings using internet
banking 24 hours a day.”