Global Guide to the World's Cheapest Places To Live: Top 15 Budget Cities Revealed

Looking for cheap places to live in the world? If you’re considering relocating abroad to stretch your budget further, understanding which cities offer the best value can transform your financial outlook. Research from GOBankingRates examined the world’s largest metropolitan areas using data from Numbeo’s comprehensive cost-of-living database and World Atlas population data to identify where your money goes furthest.

The methodology compares each city against U.S. average costs, with a baseline score of 100. A city scoring 33, for example, offers expenses approximately 67% lower than typical U.S. costs. The analysis evaluated four key metrics: cost-of-living index (local goods, services, restaurants, transportation, utilities), rent index (typical housing costs), groceries index (food expenses), and local purchasing power index (what an average salary can purchase locally).

Asia Dominates the Affordable Living Rankings

The data reveals a striking pattern: cheap places to live in the world are concentrated heavily in Asia, with Indian cities claiming nine of the top 15 spots. Here’s where budget-conscious expatriates and remote workers find maximum affordability:

The Ultra-Affordable Tier (Cost-of-Living Index Below 25):

Pune emerges as the world’s most budget-friendly major city with a cost-of-living index of 24.8 and exceptional purchasing power of 109.7—meaning salaries stretch remarkably far. Delhi (24.5 index), Hyderabad (24.3), and Ahmedabad (24.4) follow closely, each offering living expenses roughly 75% below U.S. standards. Rent remains extraordinarily low in these metro areas, ranging from just 6.0 to 6.9 on the index.

Karachi, Pakistan, and Lahore, Pakistan, represent even more extreme budget options, with cost-of-living indices of 19.3 and 19.5 respectively, though with lower purchasing power indices. These cities rank among the absolute cheapest globally for basic living expenses.

The Value Sweet Spot (Index 24-30):

Chennai (22.5), Kolkata (21.6), and Bangalore (29.3) offer comparable affordability while maintaining strong purchasing power indexes—76 to 108—suggesting good earning potential alongside low living costs. Mumbai presents slightly higher expenses (25.1 index) but maintains reasonable housing costs at 18.3.

Understanding the Cost Metrics Behind These Budget Destinations

China’s affordable mega-cities present an interesting contrast. Wuhan (32.7 index) and Chengdu (32.2) are significantly more expensive than their South Asian counterparts but remain substantially cheaper than developed nations. Their higher rent indices (8.4 and 7.5 respectively) reflect more developed real estate markets, though still offering excellent value compared to Western standards.

The rent index particularly distinguishes cheap places to live in the world. While U.S. rental costs baseline at 100, most affordable Asian cities range from 3.0 to 11.8, meaning monthly housing costs might run $300-$500 in the cheapest locations versus $1,500+ in American cities.

African Cities Offer Unique Value

South Africa’s major urban centers—Johannesburg (35.5 index) and Cape Town (34.1)—represent Africa’s most affordable metropolises for expatriates. These cities balance higher living costs than South Asian options with significantly better purchasing power indexes (91.4 and 88.6 respectively). This combination means stronger local earning potential and established infrastructure, making them attractive for remote workers seeking quality-of-life factors alongside affordability.

Kuala Lumpur, Malaysia (35.0 index) bridges the gap between ultra-budget Asian destinations and higher-cost alternatives, offering 65% savings versus U.S. expenses with developed city amenities.

The Economics Behind the Rankings

The evaluation framework reveals why certain cities rank as the cheapest places to live in the world. Groceries indices show India’s food costs at 23.8-26.7 (versus 100 in the U.S.), while rent indices demonstrate how competitive housing markets in established cities like Bangalore and Hyderabad keep accommodation affordable. Local purchasing power indexes above 90 indicate salaries in these regions provide strong buying capacity for everyday expenses.

Cities ranking highest overall on affordability typically combine three factors: minimal housing costs, low food expenses, and reasonable purchasing power. This explains why Pune’s ranking as the world’s most affordable city reflects not just low living costs, but salaries that purchase substantial goods and services locally.

Based on 2024 data compiled from Numbeo’s standardized indices, these rankings reflect a snapshot of global affordability. For those seeking cheap places to live in the world, the data clearly demonstrates that strategic geographic choices can reduce living expenses to one-third of typical developed-world costs while maintaining access to major metropolitan services and employment opportunities.