Expatriate Magazine (13)

RE L O C A T I O N
GL O B A L RE N T SU R V E Y
Geneva moves up in the Global rankings to become one of the world’s costliest locations for expatriate
rental properties while London falls as the supply of rental properties increases, according to a recent study
by Mercer for employees sent on overseas assignments.
F
rom a survey of 300 cities across the world, Mercer ASIA PACIFIC
has produced a rental property index of the ﬁ fty Asia dominates the top 10 most expensive cities for
most popular cities for expatriate assignments. The expatriate properties. Tokyo (156.10) is the second most
research provides multinational companies with ﬁ nancial expensive rental city for expatriates globally – up from 3rd
information on rental prices for their expatriate employees place in 2008 due to an appreciation of around 17 percent
in major commercial centres. Data is based on typical in the value of the yen against the dollar since September
rents for 1-4 bedroom apartments and 3-4 bedroom houses, 2008. Hong Kong moved down one place to third position
furnished and unfurnished. New York is used as the base (142.10) due to rental prices decreasing as a result of reduced
city, with a score of 100 points. As the index is based on demand from the economic slowdown. Singapore ranks 10th
cost comparisons using the US dollar, currency exchange in 2009 (94.10) – down one position since 2008, also due to
rates have an inﬂ uence on the rankings. weakening demand. Beijing has moved up four positions to
Marie-Laurence Sépède, senior associate and research 6th place (98.30) with its rental prices stable and its currency
manager at Mercer, commented, “The world’s housing linked to the US dollar.
markets have been sliding since 2008, and strong currency
ﬂ uctuations in the past few months have also had a strong THE AMERICAS
impact on the comparative cost of expatriate housing. The In the United States the rental market within some cities
value of the Euro has dropped by around 12 percent against is resilient and rental prices across the country are increasing.
the US dollar since September last year, while the Polish New York City in 5th position has moved up 2 places
zloty, Mexican peso, Australian dollar, Brazilian real and (100.00) while Los Angeles ranks 17th place (72.60).
the British pound have all lost more than 30 percent in value “The growing number of foreclosures is forcing more
against the dollar during the same period. people to look for apartments and houses to rent. However,
we expect rental prices to decrease as unemployment and
EUROPE other economic factors begin to inﬂ uence the market,” Mrs
London has moved down ﬁ ve places and is now in Sépède commented.
9th position, scoring 95.60 and is the third highest ranking Most cities in South America have dropped in the
European city after Geneva which scores 96.80. As well as ranking with Sao Paulo moving from 16th to 27th place
the British pound’s decline in value against the US dollar, (53.40) and Rio de Janeiro moving from 20th to 35th place
London residential rents are now falling as the supply of (49.40), impacted by the near 50 percent devaluation of the
rental property increases. Other European cities in the top Brazilian real against the US dollar.
20 include Paris in 13th place (77.20), Milan at 15 (75.40) “In recent months, much of the movement in the rankings
and Copenhagen at 20 (61.10). can be attributed to currency ﬂ uctuations. Looking ahead
over the next few months, we would expect to see a general
MIDDLE EAST AND AFRICA decline in rental prices due to the economic slowdown.
Dubai has the most expensive rental prices in the Middle Multinational companies should closely monitor these OM
.C
East, in 12th place with a stable score of 82.50 over the last changes in the markets so as not to lose out on opportunities
six months. The United Arab Emirates dirham is pegged to for cost savings,” commented Mrs Sépède.
the US dollar, and the real estate market, though facing some
difﬁ culties, has not yet experienced a major fall in rental Mercer is a leading global provider of consulting, UEGL@DREAMSTIME
prices. However, this is expected to happen in the coming outsourcing and investment services. For more information
ANZ PFL
months as the global economic crisis impacts this region. on the survey visit their website at www.mercer.com.
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