Q.4 2022
Data Points
A Selection of AIRINC Research Results
This quarter’s cost of living research was conducted primarily in Europe, Asia, and mainland Southeast Asia.
Housing Update
Snapshots of expatriate-quality rental markets around the world
War in Ukraine
Russia’s continued invasion of Ukraine is still having significant effects on rental markets in Europe and Central Asia as nationals and expats flee both Ukraine and Russia. Predictions are bleak for the coming winter as living conditions worsen in Ukraine. Hundreds of thousands more in Ukraine are expected to leave the country, putting even more strain on already very limited housing markets in the region. Russians are leaving too if and when they can, adding to the numbers, although countries they can enter and stay in are still limited.
Utilities in Europe
Utility costs continue to dominate the headlines in western Europe. The ongoing war and associated economic factors have further disrupted major energy flows and transactions especially from Russia to parts of Europe and beyond. Since Q1 2022, utility costs have risen significantly and, while government action has mitigated these increases in some places, most consumers are facing higher bills for electricity and natural gas.
Tbilisi, Georgia
One of the rental markets most impacted by the conflict in Ukraine is Tbilisi. Sources noted that availability is so low that it is bordering on non-existent. Approximately 200,000 Russians have entered Georgia, as well as thousands of Ukrainians and Belarussians. Expatriates need to be flexible in their home search, regardless of budget.
Germany
In some rental markets, it is common practice for certain utility costs to be included in rent. In Germany, nebenkosten may include maintenance for shared areas, elevators, water, and heating. Due to the rising cost of utilities, the increased nebenkosten resulted in higher rents for apartments this update. In addition, a lack of supply versus demand in major cities like Frankfurt, Hamburg, Mainz, and Munich also contributed to rent increases.
Kazakhstan
Another location with relatively easier access to Russians, Kazakhstan has become a destination for those avoiding the military mobilization in Russia. This increased demand has raised rents across the country. In other news, after several years as Nur-Sultan, the name of the Kazakh capital is Astana again.
Phnom Penh, Cambodia
Vacancy rates are low for an already limited supply of expatriate-quality housing, especially for larger apartments and houses in central areas. Increased demand has driven rents up and, though new construction is in the works, those projects may not be ready to rent for several more years.
Taipei, Taiwan
Expatriates have been returning to Taiwan in increasing numbers after the government reopened the border in October. This higher demand is coupled with a reduced supply due to more landlords selling off properties. Larger budgets are now needed to secure good-quality properties.
Bangkok, Thailand
During the early years of the pandemic and restrictions, tenants had more power to negotiate with landlords. Now, things have returned to a more normal status and with more expatriates coming in, rents are rising.
Goods and Services Inflation
Selected locations with inflation higher than 5% for 6 months
Azerbaijan
Bangladesh
Belarus
Croatia
Czechia
Estonia
Greece
Hungary
Kazakhstan
Kyrgyzstan
Laos
Latvia
Lithuania
Mongolia
Myanmar
Nepal
Pakistan
Poland
Serbia
Sri Lanka
Sweden
Turkey
Turkmenistan
Ukraine
Uzbekistan
Selected 3-month Exchange Rate fluctuations of more than 5%
Laos
Currency: LAK
Change vs EUR: -13.5%
Change vs USD: -8.7%
Mongolia
Currency: MNT
Change vs EUR: -10.8%
Change vs USD: -5.9%
Russia
Currency: RUB
Change vs EUR: -9.3%
Change vs USD: -4.3%
Kyrgyzstan
Currency: KGS
Change vs EUR: -9.0%
Change vs USD: -4.0%
Nepal
Currency: NPR
Change vs EUR: -8.3%
Change vs USD: -3.3%
India
Currency: INR
Change vs EUR: -8.2%
Change vs USD: -3.2%
Bangladesh
Currency: BDT
Change vs EUR: -7.8%
Change vs USD: -2.8%
Uzbekistan
Currency: UZS
Change vs EUR: -7.8%
Change vs USD: -2.8%
Turkey
Currency: TRY
Change vs EUR: -7.0%
Change vs USD: -1.9%
Iceland
Currency: ISK
Change vs EUR: -6.6%
Change vs USD: -1.5%
Vietnam
Currency: VND
Change vs EUR: -6.3%
Change vs USD: -1.3%
Sri Lanka
Currency: LKR
Change vs EUR: -6.3%
Change vs USD: -1.1%
China
Currency: CNY
Change vs EUR: -5.7%
Change vs USD: -0.6%
Ukraine
Currency: UAH
Change vs EUR: -5.7%
Change vs USD: -0.5%
Israel
Currency: ILS
Change vs EUR: -5.5%
Change vs USD: -0.3%
Azerbaijan
Currency: AZN
Change vs EUR: -5.3%
Change vs USD: -0.1%
Belarus
Currency: BYN
Change vs EUR: -5.3%
Change vs USD: 0%
Cambodia
Currency: USD
Change vs EUR: -5.2%
Change vs USD: 0%
Hong Kong
Currency: HKD
Change vs EUR: -5.2%
Change vs USD: 0%
Romania
Currency: RON
Change vs EUR: -0.4%
Change vs USD: 5.2%
Thailand
Currency: THB
Change vs EUR: -0.3%
Change vs USD: 5.2%
Serbia
Currency: RSD
Change vs EUR: -0.1%
Change vs USD: 5.4%
Belgium
Currency: EUR
Change vs EUR: 0%
Change vs USD: 5.5%
South Korea
Currency: KRW
Change vs EUR: 0.4%
Change vs USD: 5.9%
Georgia
Currency: GEL
Change vs EUR: 0.4%
Change vs USD: 6%
Poland
Currency: PLN
Change vs EUR: 0.6%
Change vs USD: 6.1%
United Kingdom
Currency: GBP
Change vs EUR: 0.8%
Change vs USD: 6.4%
Czechia
Currency: CZK
Change vs EUR: 0.8%
Change vs USD: 6.5%
Albania
Currency: ALL
Change vs EUR: 1.1%
Change vs USD: 6.7%
Research Location Update
Q.4 2022 Researched Locations and Upcoming Q.1 2023 Locations
AIRINC researches more than 150 locations each quarter.
White Papers & Articles
Mobility Optimization Paper
In this period of transition and reinvention, many companies are reorganizing their Mobility functions to address changes to their business or talent environments. We recently interviewed six Mobility leaders to learn how they are optimizing their Mobility functions. Everyone agreed that an optimized Mobility function is one that adds value to the organization by offering customers the right balance of skillsets and resources.
White Papers & Articles
Developmental Assignments & the Importance of Knowing Your Audience
Many mechanics of a developmental assignment are like that of a traditional expat assignment. Tax equalization, immigration support, and a COLA are commonly provided for both move types. However, developmental assignments target a specific type of employee: emerging talent, typically below age 35, that shows growth potential to the business.
Benchmark Surveys
2022 Mobility Outlook Survey
Global Mobility has emerged from the pandemic as a remarkably different function. After a second year managing travel restrictions, heightened immigration complexity, and remote work consequences, Mobility has honed its compliance skills and is shifting focus to address its next big challenge – helping attract and retain top talent.
White Papers & Articles
2022 Remote Work Playbook
In our first version of this playbook published in 2020, it was not clear if the rise of remote working would continue or only be a temporary pandemic phenomenon. It is now clear that remote work is here to stay.
