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10. Nagoya, Japan

The cost of living in Nagoya has risen rapidly in the past few years, with the city breaking into the top 10 for the first time in 2012 from 11th in 2011 and 19th in 2010.

Nagoya is Japan’s auto manufacturing hub, and an important place of business for some of the world’s leading carmakers like Toyota, Honda, General Motors and Volkswagen.

Expats are generally drawn to the city because of its large industrial sector. Demand for housing in the densely populated area, which is the third-largest in Japan, has driven up the cost of housing.

Still, the cost of renting a luxury two-bedroom apartment in Nagoya is around half the cost of renting in Tokyo. But Nagoya is as expensive as Tokyo when it comes to the cost of a cup of coffee, fuel or a fast-food meal. To top it off, a surging yen has resulted in higher prices in general for expats living in Japan.

Monthly Rent, Luxury 2 Bedroom: $2,551
Cup of Coffee: $6.38
One Gallon of Gasoline: $6.70
Daily International Newspaper: $6.38
Fast-Food Meal: $8.42

Pictured: Nagoya's downtown area

Photo: Jantelagen | Mark McDonald | Getty Images