Mumbai is regarded as one of the world's most expensive and crowded cities, but it was proven recently with Mercer's 2022 Cost of Living survey. According to the study conducted across 227 cities across the globe, in March 2022, Mumbai is the 127th most expensive city worldwide. This list also features other Indian cities, like New Delhi at rank 155, Chennai at 177, Bengaluru at 178, and Hyderabad at 192, making Mumbai the most expensive city in India.

The survey also ranked Pune at 201 and Kolkata at 203, making them India's least expensive cities that were included in this list. As per the survey, Hong Kong is the most expensive city in the world.

According to Mercer's survey, Mumbai is a popular location for multinational corporations to develop operations. Since most employment opportunities are here, more people and professionals relocate to the city, increasing the overall cost of living. However, due this higher cost and saturation, in terms of both residential and commerical units, businesses are also considering other low-cost areas such as Hyderabad, Chennai, and Pune.

Mercer's survey calculates the cost of living for the international employees in cities by comparing over 200 factors like transport, food, housing, clothing, household goods, and entertainment. It was noted that the COVID-19 and the Ukraine-Russia War had affected the exchange rate fluctuations, reducing the number of professionals relocating to Asia over the past 18 months.