In This Post
- History of Karachi’s ranking
- How EIU ranks cities
- Cost of living in Karachi
- Buying property in Karachi
- Most affordable cities in the world
- Most expensive cities in the world
Did you know Karachi has once again been declared one of the most affordable cities in the world?
According to the latest Worldwide Cost of Living Index, which is run by the Economist Intelligence Unit (EIU), Karachi ranks sixth on the list of the least expensive cities, making it the cheapest city to reside in Pakistan.
The Economist Intelligence Unit is a UK-based research and analysis firm that evaluates the economic growth, inflation rate, and political stability, among other factors, in countries across the globe to publish its biannual report declaring the top most expensive and cheapest cities in the world. The Worldwide Cost of Living surveys are conducted every March and September, while the full reports are released in June and December, respectively.
Whether you are already living in Karachi or are planning to relocate there, this analysis on why the City of Lights has been declared one of the most affordable cities in the world is a must-read for all.
History of Karachi’s Ranking on the Worldwide Cost of Living Report
The bustling metropolis that draws a large number of people from all parts of the country for better job and education opportunities has been a constant fixture in the list of the top 10 least expensive cities in the world as per the EIU rankings. In fact, it’s ranking on the list remains unchanged from the Worldwide Cost of Living report released last year.
Over the past decade, the populous city was even ranked as the cheapest place to live in the world a few times by the Economist Intelligence Unit.
How Does the Economist Intelligence Unit Rank Cities?
For its 2022 report, the Economist Intelligence Unit surveyed 172 major cities worldwide to analyse the individual prices of 400 essential commodities. This data is then compared to the cost of living in New York City in the United States, which is used as the benchmark for this report with its index set at 100. The rest of the cities are then ranked from most expensive to least expensive based on what the residents are charged at supermarkets, mid-priced stores, and specialized outlets.
The biannual Worldwide Cost of Living Report is based on the prices customers have to pay for groceries, clothing, household supplies, and items of personal use. Rental prices, transportation, utility bills, school fees, healthcare services, and recreational costs are also evaluated.
“The Worldwide Cost of Living is a biannual Economist Intelligence Unit survey that compares more than 400 individual prices across 160 products and services. These include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs,” the report stated. “The survey itself is a purpose-built internet tool designed to help human resources and finance managers calculate cost-of-living allowances and build compensation packages for expatriates and business travellers,” it continued.
It is important to mention that most of the cities deemed as inexpensive in the list are located in Asia.
“The war in Ukraine, Western sanctions on Russia and China’s zero-covid policies have caused supply-chain problems that, combined with rising interest rates and exchange-rate shifts, have resulted in a cost-of-living crisis across the world,” said Upasana Dutt, Head of Worldwide Cost of Living at EIU. “We can clearly see the impact in this year’s index, with the average price rise across the 172 cities in our survey being the strongest we’ve seen in the 20 years for which we have digital data. We expect prices to start easing over the coming year as supply bottle-necks start to ease and slowing economies weigh on consumer demand.”
The Cost of Living in Karachi
Being the largest city in Pakistan, Karachi is home to a truly diverse population belonging to varying income classes. Therefore, the price of commodities in each part of the metropolis might vary from that in the others.
However, to give you an overview, here is a breakdown of the cost of living in Karachi as per Numbeo, a renowned database of reported consumer prices, quality of living and crime and safety rates, among other statistics. This table includes the average prices a consumer in Karachi is charged for public transportation, grocery items, food and drinks, school fees and basic utilities.
| Items | Quantity | Average Prices |
| Water | 1.5-litre bottle | PKR 79.33 |
| A loaf of fresh white bread | 500 g | PKR 102.50 |
| White rice | 1 kg | PKR 243.53 |
| Regular eggs | A dozen | PKR 254 |
| Chicken fillets | 1 kg | PKR 638.67 |
| Beef round (or equivalent back leg red meat) | 1 kg | PKR 901.84 |
| Meal at an inexpensive Restaurant | 1 person | PKR 200 to 500 |
| Three-course meal at a mid-range restaurant | 2 people | PKR 2,500 |
| One-way Ticket (Local Transport) | 1 person | PKR 50 |
| Taxi Start (Normal Tariff) | – | PKR 150 |
| Taxi 1km (Normal Tariff) | – | PKR 35 |
| Basic Utilities (Electricity, Heating, Cooling, Water, Garbage) | For an 85-square-meter apartment | PKR15,066 |
| Cinema | 1 seat | PKR 1,000 |
| Private Preschool or Kindergarten | 1 child per month | PKR 11,434.21 |
| Private Primary School | 1 child per year | PKR 265,343.08 |
| Jeans | 1 pair | PKR 3,234.26 |
| Summer Dress in a Chain Store | 1 | PKR 5,410.81 |
Buying property in Karachi
Karachi is considered the economic hub of Pakistan. That, paired with affordable housing options, attracts job seekers and students from all across the country to relocate here to look for better employment and education options.
To put it simply, the city offers a range of accommodation options to its residents. From upscale gated communities to affordable housing societies, you can find a home in Karachi for almost every budget.
If you’re interested in buying a property in Karachi, you can head over to Zameen.com – the top property enterprise in Pakistan – to browse through the latest listings.
However, before we wrap up, let’s take a look at the overall rankings published by the Economist Intelligence Unit.
Most Affordable Cities in the World in 2022
These are the cheapest cities in the world, as per the latest Worldwide Cost of Living for 2022.
| EIU Ranking | City | Country |
| 1. | Damascus | Syria |
| 2. | Tripoli | Libya |
| 3. | Tehran | Iran |
| 4. | Tunis | Tunisia |
| 5. | Tashkent | Uzbekistan |
| 6. | Karachi | Pakistan |
| 7. | Almaty | Kazakhstan |
| 8. | Ahmedabad | India |
| 9. | Chennai | India |
| 10. | Algiers | Algeria |
| 10. | Bangalore | India |
| 10. | Colombo | Sri Lanka |
Most Expensive Cities in the World
According to the Worldwide Cost of Living for 2022, these are the top 10 expensive cities in the world.
| EIU Ranking | City | Country |
| 1. | Singapore | Singapore |
| 1. | New York | United States |
| 3. | Tel Aviv | Israel |
| 4. | Hong Kong | Hong Kong |
| 4. | Los Angeles | United States |
| 5. | Zurich | Switzerland |
| 6. | Geneva | Switzerland |
| 7. | San Francisco | United States |
| 8. | Paris | France |
| 9. | Copenhagen | Denmark |
| 10. | Sydney | Australia |
This brings us to the end of our blog. To learn more about living and buying property in Karachi, please stay connected to Zameen Blog – the best real estate blog in Pakistan. In the meantime, if you’re planning to travel to the city even briefly, here’s our pick of the top things to do in Karachi to make the most of your time here.
Furthermore, you can post your questions about real estate in Karachi on Zameen Forum or share them with us at blog@zameen.com. Also, don’t forget to visit our Facebook page to stay up-to-date about the latest developments in the construction and property sectors.
