The increase in real estate prices and the strengthening of the domestic currency against the dollar have pushed Bucharest up to the middle of the ranking of the world's most expensive cities.
Bucharest climbed seven places in the ranking against last year, and is the only city in Romania included in the survey conducted by Mercer, one of the biggest human resources advisory firms in the world, part of the Marsh & McLennan Companies.
In 2007, Bucharest, ranked 78th, with 79.6 points; it has accumulated 83.6 points within one year, moving up to 71st, which puts it at the middle of the ranking that comprises 143 cities.
"The reason behind Bucharest's move is the upward trend of the domestic currency against the US dollar, so that an expat from an American company finds it is more difficult to buy the necessary daily basket.
"The US dollar has lost 3.52% against the RON in the past year. The development of the real estate market and the increase in prices on this market, especially in Bucharest, is yet another reason why living costs have jumped," explained Cristian Fugaciu, CEO of Marsh Romania, a company that represents Mercer on the local market on the Health & Benefits segment.
As for quality of life, Bucharest ranks 108 among 215 cities in the world, according to another Mercer index compiled last year.
Moscow is the world's most expensive city for expats for the third year in a row, followed by Tokyo and London. Oslo climbed six places to fourth, followed by Seoul to fifth.
Asuncion, Paraguay, is the cheapest city in Mercer's survey for the sixth year on end. The top ten positions are occupied by European and Asian cities.
Most European cities moved up because of the strengthening of domestic currencies against the dollar. For instance, Prague climbed 20 places and Istanbul 15.
The Central and Eastern European
