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Kathmandu- Global cost-of-living reports in 2025 highlight several cities across Asia, Africa, Europe, and Latin America as the most affordable places to live, depending on whether the focus is on local residents or international expatriates.
Cheapest Cities for Residents
For local affordability, India continues to dominate the rankings. According to a Numbeo-based analysis cited by Nasdaq in early 2024, cities like Pune, Delhi, Bangalore, and Hyderabad are among the cheapest major cities in the world for residents. These metros offer low housing costs, budget-friendly food, and accessible public transport, keeping everyday living expenses significantly below global averages.
Cheapest Cities for Expats
For expatriates, however, affordability varies. Mercer’s 2024 cost-of-living report ranked Abuja and Lagos in Nigeria as the least expensive cities for international workers, although this was largely driven by currency devaluation rather than improved living standards.
In September 2025, a CNBC report citing Expat Insider revealed that Vietnam emerged as the most affordable country for expats, with Hanoi offering exceptional satisfaction in terms of cost versus quality of life. Colombia and Panama also ranked highly for international residents seeking lower expenses.
Other Affordable Cities in 2025
Several other cities have been spotlighted in recent reports as budget-friendly destinations:
Bari, Italy – Known for cheaper rents and groceries compared to other Italian cities, making it attractive for those seeking a European lifestyle at lower costs.
Medellín, Colombia – Popular among retirees and digital nomads, praised for its mild climate, cultural vibrancy, and affordable housing.
Cebu, Philippines – A hub for expats and remote workers, offering low-cost rent, inexpensive markets, and affordable utilities.
Hanoi, Vietnam, is renowned for extremely cheap street food, rent, and transportation, making it one of the most cost-effective global capitals.
Kuala Lumpur, Malaysia – Offers a modern infrastructure, an efficient transport system, and a high quality of life at comparatively low costs.
Bottom Line
Whether for residents or expats, 2025 shows a diverse mix of affordable living options worldwide. From India’s bustling metro cities to Vietnam’s cultural hubs and Colombia’s scenic retreats, individuals can find cost-effective lifestyles without compromising on quality.
