Yerevan: The Region’s Most Expensive City Amidst Poverty
The Mercer Human Resource Consulting, an international consulting group specializing in recruitment for international businesses, annually publishes its Mercer Cost of Living Survey. This survey, which examines the situation in major cities worldwide, considers the prices of over 200 types of goods and services, including housing, transportation, food, clothing, household goods, and entertainment. The price range is based on what an average manager working abroad would expect.
The survey uses New York, the most expensive city in the United States, as a benchmark, with a cost of living index of 100. This means that if New York’s index is 100, then the scores of cities above or below it should be comparable to New York’s index.
For example, Zurich, Switzerland, is considered the most expensive city in the world from this index’s perspective, with an index of 118.5 in 2026. This means that the cost of living in Zurich was 18.5 percent more expensive than in New York. On the other hand, the cheapest city in 2026 was Peshawar, Pakistan, where the cost of living index was 15.1.
The city’s cost of living index is composed of several parts:
- The average rental price of apartments in the city.
- The average amount of money needed for living expenses.
- The average price of groceries.
- The average price in restaurants, cafes, and food courts for similar meals.
It turns out that by this index, Yerevan’s indicators are worse than those of the capitals of our neighboring countries.
Yerevan’s Cost of Living: A Closer Look
While New York’s overall cost of living index is 100, Moscow’s was 47.5 in 2026, ranking it as the 290th most expensive city. This means that life in Moscow is only about twice cheaper than in New York. However, Yerevan’s index was 42.4, indicating that the cost of living in Yerevan is very close to Moscow’s. More precisely, the cost of living in Yerevan is only about 9 percent cheaper than in Moscow.
For comparison, Tbilisi’s index in 2026 was 36.6, meaning that living in Tbilisi is about 16 percent cheaper than in Yerevan. This is despite the fact that Georgia’s per capita GDP is about 14 percent higher than Armenia’s. According to 2025 data, Armenia’s per capita GDP was $8,960, while Georgia’s was $10,126.
Surprisingly, Baku’s index is even lower, at 32.3 in 2026. This means that life in Yerevan is more than 31 percent more expensive than in Baku. While Armenians’ standard of living is about 22 percent higher than Azerbaijanis’, it is interesting that Yerevan has become the most expensive city in the region in terms of city costs.
According to the same data, living in the Georgian capital is cheaper than in Yerevan (353rd place) and Istanbul (336th place), as well as Belgrade (314th place). According to Numbeo data, the approximate monthly cost of living for a family of four in Tbilisi is $2,341, excluding rent, while an average person needs $638, excluding rent.
According to the same center’s calculations, a family of four in Yerevan (excluding rent) needs $2,700, in Istanbul $2,831, and in Belgrade $2,771. A single person needs $741 in Yerevan, $757 in Istanbul, and $797 in Belgrade.
The average grocery price index in Yerevan was 37, and the restaurant price index was 42.5. Meanwhile, in Tbilisi, the grocery index was 35.5, and the restaurant index was 40.2. This means that groceries in Tbilisi are about 4 percent cheaper than in Yerevan, and restaurant prices are 6 percent cheaper. Rent in Yerevan is also about 4 percent more expensive than in Tbilisi. Overall, the cost of living in the Armenian capital is 14.2% higher than in Tbilisi.
Ineffective Management and Low Living Standards
In fact, we can note that Yerevan’s indicators are cheaper only compared to Istanbul, Moscow, and Belgrade, and even then, the difference is not large. However, it should be recalled that Armenia’s per capita GDP is significantly lower than that of Russians, Georgians, and Turks. While our figure is $8,960, and Georgia’s is $10,126, Russia’s is $17,446, and Turkey’s is $18,198.
Our indicator is only higher than Azerbaijanis’, where the per capita GDP in 2025 was $7,365. Thus, we can conclude that the residents of Armenia live about twice as poorly as Russians and Turks. We live about 13 percent worse than Georgians. We only live about 22 percent better than Azerbaijanis, but the prices of goods and groceries in Yerevan are relatively higher than in Tbilisi and Baku and differ very little from the prices in Istanbul and Moscow.
All this shows the degree of inefficient and unfair governance established in Armenia. The situation is even more difficult for Yerevan residents, who barely survive in the most expensive city in the region with low wages and pensions. This is the reality.
Source: 7or.am
