Where Are the Cheapest Places to Live in the World? 15 Global Cities Ranked by Cost

Finding affordable living destinations is increasingly important for remote workers, retirees, and those seeking a lower cost of living. If you’re researching the cheapest place to live in the world, the answer likely lies in Asia or Africa, where several cities offer living expenses dramatically below U.S. standards. Using data sourced from Numbeo’s cost-of-living database and cross-referenced with global city population data, we’ve identified the 15 most budget-friendly cities worldwide based on multiple affordability metrics.

How Are These Cheapest Places Measured?

To determine which cities represent the cheapest place to live on a global scale, researchers analyzed four key factors for each location: cost of living index, rent index, groceries index, and local purchasing power. Each metric is scored against U.S. averages set at 100. For context, a city scoring 33 on the cost-of-living index means residents spend approximately 67% less than typical American expenses—making it genuinely affordable for international relocators.

East Asia’s Budget-Friendly Cities

China dominates the ranking of cheapest places to live, with two cities in the top 15. Wuhan leads with an exceptionally low cost-of-living index of 32.7, where groceries cost just 35.3% of U.S. prices and rent is nearly negligible at 8.4. The city’s local purchasing power index of 61.3 indicates reasonable wage levels relative to expenses. Similarly, Chengdu ranks 11th globally with a cost-of-living index of 32.2, making it another top destination for those seeking ultra-affordable Chinese cities. Both locations offer modern amenities while maintaining historically low expense ratios.

Kuala Lumpur, Malaysia (ranked 13th) presents a middle-ground option with a cost-of-living index of 35.0 and rent index of 11.8, attracting expats who want Southeast Asian convenience with relatively affordable pricing.

South Asia’s Ultra-Affordable Powerhouse

The cheapest places to live globally are overwhelmingly concentrated in South Asia, where India and Pakistan occupy 9 of the top 15 positions. Pune, India claims the #1 spot with the lowest cost-of-living index at 24.8—meaning residents spend just 25% of what Americans do on daily expenses. Remarkably, rent index sits at only 6.9, and groceries cost 25.1% of U.S. levels. The city’s local purchasing power index of 109.7 is exceptional, indicating strong earning potential despite ultra-low expenses.

Delhi (ranked 2nd) and Bangalore (ranked 3rd) follow closely, each with cost-of-living indexes under 30. These Indian tech hubs combine affordable living with modern infrastructure and job opportunities in the IT sector. Other standout Indian cities include Hyderabad (4th), Chennai (5th), Kolkata (7th), and Ahmedabad (9th)—all scoring between 21-29 on the cost-of-living index.

Pakistan’s cities also represent exceptional value: Karachi (ranked 12th) and Lahore (ranked 10th) both feature cost-of-living indexes under 20, though with significantly lower purchasing power indexes (23.6 and 26.2 respectively), reflecting lower average wages.

African Cities: Hidden Gems for Budget Living

South Africa hosts two cities in the cheapest places rankings: Johannesburg (6th) and Cape Town (8th). Johannesburg stands out with a cost-of-living index of 35.5 but surprisingly strong local purchasing power at 91.4—among the highest on the list. Cape Town offers similar affordability at 34.1 with exceptional purchasing power of 88.6, making both cities attractive for those seeking budget-conscious living in a developed African nation.

Why These Cities Remain the Cheapest Places to Live

The consistency of Asian and African cities in this ranking reflects several factors: lower wage structures increase competitive pricing for goods and services, real estate markets haven’t experienced the dramatic inflation seen in Western markets, and local economies maintain strong purchasing power despite lower absolute costs. Cities with higher purchasing power indexes (like Bangalore and Johannesburg) offer particular value, combining affordability with economic opportunity.

The Complete Ranking of Global Budget Destinations

From the data compiled in 2024, here’s how all 15 cheapest places rank by cost-of-living index:

1. Pune, India — 24.8
2. Delhi, India — 24.5
3. Bangalore, India — 29.3
4. Hyderabad, India — 24.3
5. Chennai, India — 22.5
6. Johannesburg, South Africa — 35.5
7. Kolkata, India — 21.6
8. Cape Town, South Africa — 34.1
9. Ahmedabad, India — 24.4
10. Lahore, Pakistan — 19.5
11. Chengdu, China — 32.2
12. Karachi, Pakistan — 19.3
13. Kuala Lumpur, Malaysia — 35.0
14. Mumbai, India — 25.1
15. Wuhan, China — 32.7

Choosing Your Next Home Among the World’s Cheapest Places

When evaluating these cheapest places to live, consider not just the cost-of-living index but also the local purchasing power index—a measure of how far your income stretches. Indian cities consistently offer the best balance, combining ultra-low expenses with strong purchasing power for remote workers earning Western salaries. Pakistani cities are cheaper overall but feature lower purchasing power, suggesting they’re best suited for locals or those with modest income requirements. South African cities provide a middle ground with developed infrastructure and reasonable affordability.

The data demonstrates that significant cost-of-living reductions are achievable for those willing to relocate internationally. Whether you prioritize minimal expenses, strong local purchasing power, or developed urban amenities, these 15 global cities represent genuine opportunities for budget-conscious living far beyond what traditional Western destinations can offer.