The best-value places to live abroad
By Naomi Caine
April 13 2007
When the going gets good, we get going.
About 200,000 Britons moved abroad last year – that’s about one every three minutes. The exodus brings the total number of UK émigrés to more than 5.5 million, according to a study by the Institute of Public Policy Research (IPPR), which means that Britain has more people living abroad than almost any other country.
You might think we up sticks because we are fed up with living in Britain, what with high taxes and mounting household bills. But the 21st century British emigrant is likely to move for a number of reasons – most of them positive. Catherine Drew of the IPPR says: “When you ask today’s emigrants why they want to leave, almost 80% move for a better job, a better climate or to join loved ones.”
How much do you know about our favourite emigration destinations? Find out with our quiz
Brits in every corner of the world

It’s all made easier by cheap travel, better communications and free movement around the European Union – which is why you find Brits in almost every corner of the world (click on the adjacent map to view a Live Maps collection of the most popular British emigration destinations).
The most popular destination is still Australia, which is home to 1.3 million Brits, or 2% of the UK population. Spain and America take second and third places. But we also move to Ireland, South Africa, France… the list goes on.
Research also shows that more people move away when the economy is buoyant. Drew says: “When the pound is strong and house prices are soaring, Britons selling up can get better value for money elsewhere.”
Rising house prices in the UK mean that many people can sell up here, buy a bigger property overseas and still have change. Property prices in this country have soared nearly 190% over the past 10 years, outstripping many other foreign destinations.
Move quickly to bag a bargain
But you will have to be quick if you want to snap up a bargain. The number of people buying a property overseas has rocketed, pushing up prices in some hotspots.
Prices in France, for example, have doubled since 1997. It’s a similar story in Spain, where property inflation has surged 120% since 1998. The gains have spread to some of the newer markets, often on the back of strong economic growth. Property inflation is running at 30% or more in some of the up-and-coming markets in eastern Europe, for example.
Cheap living
It’s not just property prices that are cheaper overseas; you can also live a lot cheaper in many of the popular destinations abroad.
Moscow is now the world’s most expensive city, according to the latest Cost of Living Survey from Mercer Human Resource Consulting – pushing Tokyo off the top spot.
Mercer’s survey covers 144 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. New York is the base city scoring 100 points; Moscow scores 123.9. London comes in fifth place, with a score of 110.6.
Bargains Down Under?
So how does the survey rank Australia, the favourite destination of emigrating Brits?
Australia is undoubtedly cheaper than the UK - Sydney is in 19th place with a score of 91.3. If you are planning to move out to Melbourne or Brisbane, your money will stretch even further. Melbourne occupies 74th place, with a score of 78.8; Brisbane is 99th with 73.2.
But some items can be more costly in Australia than in Britain. A Place in the Sun, a magazine for overseas property investors, recently bought a basket of basic goods in various countries around the world. And Australia didn’t score well. A litre of milk costs 60p, a loaf of bread 84p, a litre of Coke 52p, a litre of petrol 50p, and a chart CD £11.62, to make a total of £14.22. The equivalent basket in the UK costs £13.01.
Rents are also relatively high in Sydney. Mercer calculates it would cost £1,104 a month to rent a luxury two-bedroom apartment in the city, which isn’t far off the London price of £1,700.
Cheaper España
Next up is Spain - and it’s a good choice if you are looking for value for money.
Madrid does not even make it into Mercer’s 50 most expensive cities in the world.
The Economist Intelligence Unit’s (EIU) worldwide costs of living survey gives Madrid a score of 97, compared with London at 125. Barcelona is slightly more expensive at 98. The bi-annual survey compares prices and products in over 130 cities around the world. Again, the base city is New York with 100 points.
Strong pound brings Stateside dollar delight
America is popular with Britons. It can also work out a lot cheaper than the UK, as anyone who has been on a shopping trip to New York can testify. The basket of everyday goods cost £10.40 in America, one of the lowest in the table.
However, Mercer ranks New York as the 10th most expensive city, up three places on last year. The main reason is the strength of the US dollar, although price increases in fuel and other consumer goods have bumped New York up the rankings.
“The strengthening of the US dollar against the European and other major currencies is a large contributor to the rise of most US cities in the rankings,” says Rebecca Powers, a Senior Consultant with Mercer’s international business.
Los Angeles is cheaper than New York at number 29. You get even more for your money in San Francisco, which comes in 34th place. Miami ranks as 39th with a score of 83.9. Real estate is one of the biggest costs of a move to the United States. The monthly rental on the two-bedroom apartment in New York would be an eye-watering £1,998.
The government has a wealth of information about moving abroad. Start your research here
The expensive Emerald Isle
It’s not cheap to live in Ireland – Dublin is the 18th most expensive city in the world according to the Mercer survey.
Property prices have pushed Ireland up the table, but it remains a popular destination because of its close proximity to and links with the UK.
“Most people want to buy a traditional home with sea or country views,” says Killian Lynch of SWS Property Services in West Cork. “A typical three-bedroom property with sea views would cost upwards of £400,000, while one with country views would cost anything upwards of £200,000.”
The high prices perhaps explain why west Cork is known as the Irish Riviera - and why several film stars, including Jeremy Irons and Daniel Day-Lewis, have homes in the area.
And prices are still rising. Last year the increase was in the region of 8% to 9%.
It’s also relatively expensive to eat out in the city. A cup of coffee would set you back £2.06, including service. It’s only £1.90 in London and £1.49 in Sydney. But you probably go to Ireland for the Guinness rather than the coffee, so maybe it doesn’t matter.
Très cher across the Channel
Mercer ranks Paris as the 15th most expensive city in the world.
Again, it’s property prices that push it up the rankings. It would cost £1,303 a month to rent a two bedroom apartment in the French capital – ahead of nearby Madrid at £892.
The EIU gives Paris a score of 130, reflecting the higher cost of living in the capital. If you move to Lyon, the score drops to 102
Stellar South Africa
But if you are looking for value for money, why not head for South Africa?
The cost of living in Johannesburg and Pretoria fell 10 percentage points leading to a ranking drop of 23 places each, according to the EIU. The slump was mainly down to the weak rand.
The South African Tourism agency reckons a meal out can cost you £10, and a litre of petrol 40p. You can also buy a three bedroom house with a swimming pool in some parts of the country for £140,000. No wonder it is one of the top ten destinations for émigrés, ahead of France.
But South Africa is bouncing back from years of stagnation after the political and economic instability of the 1980s and 1990s. Property prices jumped by 32% last year and some experts believe they are set to rise by as much as 60% by 2010, when South Africa hosts the next World Cup.
So if you are planning a move, better make it sooner rather than later.
How much do you know about our favourite emigration destinations? Find out with our quiz
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