Dublin ranked among world's most expensive cities

The high price of living in Dublin was underlined today as it was listed among the 20 most expensive cities in the world.

Living in the capital now costs more than enjoying the chic of Milan, the cool of Stockholm or the money markets of Singapore, according to the Economist Intelligence Unit.

The EUI’s worldwide cost of living survey ranked Dublin at 16, a jump of five places into the top 20.

The city now lies ahead of Berlin, Amsterdam and Lyon and lags only two places behind Hong Kong.

Dermot Jewell, Consumers Association chief executive, noted that cinema prices, drink, hotel rooms and eating out were major factors in pushing Dublin up the scale.

“We are such a popular city with visitors and while there are reasonable prices for some, it’s at its highest if you were just to land in Dublin and hit the main drag,” he said.

And the consumer rights chief warned that prices were not likely to begin dropping any time soon noting that hoteliers in Dublin continued to make more than others across Europe.

“It really doesn’t matter what element you use to approach and assess the city it has become expensive, it has stayed expensive and it will continue to be expensive,” he said.

The twice yearly EUI cost of living survey records prices for over 160 items including drink, clothing, entertainment, tobacco and the average shopping basket.

Scandinavian countries and Japan upheld their reputations for being the priciest places in the world with Oslo topping the poll, Reykjavik and Helsinki hit the top 10, while Tokyo and Osaka stayed in the top five.

Eight of the 10 most expensive cities in the survey are now based in Europe, with London seventh, although Paris, ranked fourth, is the only one in the euro zone.

But even with the constant moaning about the cost of living, Ireland continues to enjoy low inflation and the fifth-highest GDP per head in the world at €30,837 helping to give it the best quality of life anywhere.

Two years ago the Economist Intelligence Unit predicted our property prices were overvalued, but since then they have shown no sign of abating.

The most recent survey by Permanent TSB/ESRI recorded national growth of 9.3% in 2005 - an increase on the rate of growth in 2004.

Consumer rights chief Mr Jewell said: “The reality is that without a doubt we have a significant amount of people who are struggling to make ends meet. The market and the situation that they will be in, and will be staying in, is rented accommodation for the rest of their remains.”

Mortgage provider Permanent TSB found prices in Kerry grew fastest – up 15% - compared to 10% in Dublin and just 2% in Leitrim with first time buyers having to fork out €250,000 for a home.

Niall O’Grady, head of marketing with the bank, forecast 10% growth to continue in 2006.

“Looking ahead at price growth this year strong demand looks set to remain a major factor, though the likelihood of further interest rate increases may act to dampen its impact somewhat especially so in the second half of 2006,” he said.

“At this stage we’re anticipating an average rate of price increase of approximately 10%.”

Meanwhile, auctioneers Douglas Newman Goode revealed their annual figures which showed prices for second hand home rose by €230 everyday last year with the average cost now at €468,273.