with ‘parking zone planning,’ where we will help them think about where they can ‘park’ their employees to continue their roles in other locations.”
Key takeaway: Global mobility teams are having to work hard to anticipate and respond to rapid change in this age of permacrisis. Ongoing data and predictive analytics are key to managing and mitigating risks and mounting responses when necessary.
4. BALANCING DEVELOPMENTS IN NEW DESTINATIONS & TACKLING HOUSING SHORTAGES Another emerging trend is the movement of corporate relocations to destinations that have lower levels of infrastructure and housing. In some countries, like Germany, companies are choosing to locate new offices and factories in cheaper, less developed areas in order to benefit from lower costs and more space for building warehouses or operational centres. While this can reduce the cost of new developments, the downside is that there is often a lack of corporate housing in more remote or less developed regions. “In Germany, we have seen a lot of movement
from major clients moving to tertiary and remote locations where there is extremely limited availability in terms of housing,” Kabiru Onikoyi of 3Sixty says. “While it is cheaper and more affordable to build new facilities and warehouses in these remote locations compared to the cost of building in Munich, there is a huge challenge in finding housing for 300 people who suddenly arrive. “It can be very difficult to provide consistency in the
temporary housing solution in this type of marketplace because adequate corporate housing solutions just do not exist. Accommodation in these areas may be outdated, with infrastructure stuck in the 1970s or 1980s, which can be a significant challenge when relocating professionals accustomed to higher standards of living, such as those from Singapore or Dubai, who are used to five-star housing solutions.” As a result, companies are forced to manage employee
expectations while finding creative solutions, such as housing workers in neighbouring cities and providing extra transport. On the other hand, the globalisation of the workforce
has further complicated the housing landscape in major cities and in regions where government tax incentives are encouraging new inflows of workers. With more professionals willing to relocate internationally, there is an increasing demand for short-term accommodation. This trend presents a challenge for governments as they must decide how to balance the demands of a globally mobile workforce with the need for local housing. “The global workforce is more mobile than ever,”
says Liam Bailey, global head of Knight Frank’s research department. “People are able to move between different jurisdictions and locations. Yet while you have got this push towards globalisation of the workforce, governments haven’t worked out how they need to respond. Do they want to encourage the provision of short-term accommodation to meet that requirement or not? How does that affect
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the population living there? This is something which will come to the fore in the next few years.” Governments are attempting to attract highly skilled,
mobile workers by offering incentives like favourable tax arrangements, he says. “For instance, Portugal has positioned itself as a destination for creative professionals. However, this strategy raises concerns about the impact on local housing markets, particularly the availability and affordability of accommodation for residents.”
Key takeaway: The shift to less developed locations, even in Europe, can create logistical and housing challenges, requiring companies to manage employee expectations and be more proactive in finding quality rental properties.
5. THE IMPACT OF REGULATORY RESTRICTIONS ON SHORT-TERM RENTALS In key markets like the US, Canada and Europe, increasingly stringent regulations on short-term rentals are putting additional strain on housing availability for corporate relocations. For example, New York has imposed strict licensing requirements for short- term rentals, making it difficult for companies to find adequate housing for employees on temporary assignments. In Europe, cities like Dublin and Athens have implemented similar restrictions to combat the housing shortage for locals, further constraining supply for corporate housing. “In cities like Dublin, demand for housing has outstripped supply by as much as 45%, pushing prices up and forcing companies to look for alternative solutions, such as long-term stays or partnering with aparthotels,” says Kabiru Onikoyi. “However, the higher costs associated with short-term accommodation remain a major challenge for businesses operating in these markets.” In major markets like London, Paris, Amsterdam
and New York, housing shortages can be exacerbated by demands from leisure travellers, particularly during peak season or when there is a large international event, which further drives up costs.
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