Read why a study by MERCER has ranked Angola's capital Luanda as the most expensive city in the world, ahead of prestigious cities like New York and London. Luanda, which now sits in second place, has maintained […] Angola was at War for +40 years. Now though, the Mercer Cost of Living Survey for 2020 ranks Luanda as only the 115th most expensive city to live in out of 209 cities on the list. So why is a city like Luanda so expensive? The position of Luanda, which has topped these rankings frequently in the past few years, is influenced by the cost of secure accommodation for expat staff as well as for everyday goods. A country that is at war for so long gets all of its infrastructure destroyed and needs to be completely reconstructed. For several years running, Luanda's cost of living was ranked alongside or even above that of global economic giants such as Singapore and Tokyo. These are the reasons why Luanda is so expensive. There are several reasons. In Mercer’s 2011 Cost of Living Survey, Luanda was the most expensive city in the world. 3 years ago By Azevedo G. In Everyday life. Initially, it was an independence war against Portugal (roughly 15 years) and then the civil war for more +25 Years. There are two main reasons why prices in Luanda became so high, so fast. Angola is an African nation on the Atlantic side of the continent housing a population of just over 28 million people. Expensive boats fill Luanda's harbour. Luanda, the capital of Angola, is a port city on the west coast of Southern Africa. Angola, and Luanda in particular, is often ranked as one of the world’s most expensive places for expats. Here, Face2Face Africa explores why Luanda remains so expensive. Angola’s capital Luanda was this year again ranked as the world’s most expensive city for expatriates in consulting firm Mercer’ 2011 Cost of Living Survey. Why is Luanda so expensive? In 2012, it was second only to Tokyo. The living conditions in the city are expensive, with most people unable to afford the essentials such as safe drinking water, electricity, and inadequate transport systems. The countries main revenue generator is the oil industry, which brings workers in from all over the world. READ ALSO: Most dangerous African countries to visit in 2020 Since the end of the civil war, the scramble for construction has begun, and from any given point you will see up to 50 cranes working on tower blocks And which city has taken Luanda’s place? The most expensive city in the world is Luanda, Angola. Why Luanda, Angola is most expensive city for expats Fareed Zakaria, GPS Michael Specter of the New Yorker tells Fareed about expat life in Angola amidst the country's oil boom. Hong Kong. Luanda, Angola It appears that the main reasons why Luanda was ranked as the most expensive city are because of the high costs of goods and steep rental accommodation rates. A seafront promenade known as the Marginal runs alongside Luanda Bay. Why is Luanda so expensive? Luanda, Angola photo: The city of Luanda, Angola, has been knocked from its position as the world’s most-expensive city, a recent survey by global consultancy firm Mercer has revealed.