Q.4 2024

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.

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Housing Update

Snapshots of expatriate-quality rental markets around the world

Dhaka, Bangladesh

Baku, Azerbaijan

Paris, France

Rome, Italy

Netherlands

Russia

Spain

Bangladesh country in blue

Dhaka, Bangladesh

The luxury rental market in Dhaka continues to boom with foreign investment. Demand from the growing middle class and a steady flow of expatriates arriving from China, India, and Japan have caused vacancy rates to fall. Sources mentioned increased infrastructure costs in relation to building new supply of properties within Dhaka, and the addition of high-end amenities in apartment complexes.

Azerbaijan country in blue

Baku, Azerbaijan

Baku saw rents increase again due to continuing expatriate arrivals, including from Russia. There is a lot of competition at both the low and high ends of the rental market due to low supply. Construction and investment have increased, and newer luxury and updated properties are commanding higher rents.

France country in blue

Paris, France

Rents in the center of Paris are up, with very limited available housing stock. Another change for centrally located apartments is that more of them are furnished than unfurnished: this is also contributing to the higher rent levels. Many units are out of circulation while owners make required upgrades for energy efficiency – new windows, insulation, appliances, and heating. Owners prefer corporate leases or secondary leases which do not protect tenants from rent increases or eviction. Standard long-term leases are now rare in the city center.

Italy country in blue

Rome, Italy

Rents in Rome are up; short-term rentals dominate the market, limiting long-term options. Landlords prefer simpler short-term leases to the heavily regulated long-term market. Competition among tenants is fierce, with a reported 29 enquiries per listing.  The situation is only expected to worsen as Rome observes the Holy Year in 2025, which is celebrated only once every 25 years and brings millions of pilgrims to the city.

Netherlands country map

Netherlands

Rents in the Netherlands are up with low supply and high demand. Owners are selling off their rental properties in response to new government regulations which moved many properties from the private to the social rental market. Amsterdam, Hague, Utrecht, and Rotterdam are some of the major markets that are up.

Russia country in blue

Russia

Rents are up dramatically across the country. The increase has happened since the late summer, when mortgage interest rates went from a fixed 8% to a floating rate of 20%. This has pushed would-buyers into the rental market; while expatriate demand has been stable, the new competition from locals has increased rents for all levels of properties.

Spain country in blue

Spain

Rents in Spain have been up, year over year, mostly attributed to government regulations: the LAU from 2019 and the 2023 Housing Law. Rather than stimulate new supply, these laws, which limit annual increases on existing leases, have caused landlords to either sell off properties or to put them into the short-term pool. Demand has been steady, but supply has been down significantly over the past 5 years. Competition for long-term rentals is strong, and rents are rising.

Goods and Services Update

Highlights from AIRINC’s in-depth research
Spotlight on: Nigerian Naira (NGN)
Spotlight on: South Sudanese Pound (SSP)

A new currency trading platform has strengthened the Nigerian naira in recent weeks. On December 2, the Central Bank of Nigeria (CBN) launched a new foreign exchange trading platform, operated through Bloomberg’s BMatch system. The Electronic Foreign Exchange Matching System (EFEMS) allows the trade of foreign currency for spot transactions involving the U.S. dollar and the naira. It’s open to all CBN-licensed dealer banks. Other participants need the CBN’s approval to use the platform. Before EFEMS was launched, foreign currency trading was conducted over the phone or through manual reporting. The new ability to complete these transactions online increases transparency and efficiency and allows the CBN to monitor regulation compliance. Shortly after EFEMS was implemented, the supply of U.S. dollars surpassed demand. Sellers on the platform began to lower their asking price, contributing to the naira’s appreciation.

The South Sudanese pound has experienced significant depreciation in the past month. Despite the country officially being at peace since 2018 following a civil war, ongoing community-based unrest and outflow from the conflict in neighboring Sudan continues to hinder its economic development. As a result, high inflation, depreciation, and an elevated level of spending are an issue. Recent changes in leadership within the Ministry of Finance have further complicated the situation. This month, President Salva Kiir appointed a new governor for the Bank of South Sudan, Johnny Ohisa Damian.

After the new appointment, the Central Bank released a statement recognizing the existing economic difficulties and detailing measures to tackle them. A substantial concern is that numerous South Sudanese individuals are hoarding cash rather than depositing it in banks because of a lack of confidence. This behavior has caused a liquidity crisis, resulting in commercial banks not having adequate funds to function effectively and exacerbating the already delicate economy, which in turn depreciates the South Sudanese pound.

In response, the Central Bank has removed the cash withdrawal cap on commercial banks and is pushing them to allow interest on savings. These measures aim to restore public confidence and encourage people to deposit their cash, hopefully stabilizing the financial system and supporting the economy moving forward.

Goods and Services Inflation

Selected locations with inflation higher than 5% for 6 months
Bangladesh
Guam
Laos flag
Laos
Myanmar flag
Myanmar
Northern Cyprus flag
Northern Cyprus
Turkey

Selected 3-month Exchange Rate fluctuations of more than 5%

Afghanistan

Currency: AFN

Change vs EUR: 6.2%

Change vs USD: 0.7%

Angola

Currency: AOA

Change vs EUR: 7%

Change vs USD: 1.3%

Brazil

Currency: BRL

Change vs EUR: -2.5%

Change vs USD: -7.7%

Cook Islands

Currency: NZD

Change vs EUR: -0.9%

Change vs USD: -6.1%

Costa Rica

Currency: CRC

Change vs EUR: 8.5%

Change vs USD: 2.8%

Ethiopia

Currency: ETB

Change vs EUR: -5.4%

Change vs USD: -10.3%

Ghana

Currency: GHS

Change vs EUR: 11.4%

Change vs USD: 5.5%

Haiti

Currency: HTG

Change vs EUR: 6.3%

Change vs USD: 0.8%

Hungary

Currency: HUF

Change vs EUR: -4.1%

Change vs USD: -9.2%

Israel

Currency: ILS

Change vs EUR: 9.5%

Change vs USD: 3.9%

Jamaica

Currency: JMD

Change vs EUR: 6.1%

Change vs USD: 0.5%

Japan

Currency: JPY

Change vs EUR: -1.3%

Change vs USD: -6.5%

Kazakhstan

Currency: KZT

Change vs EUR: -2.2%

Change vs USD: -7.3%

Laos

Currency: LAK

Change vs EUR: 6.6%

Change vs USD: 0.9%

Liberia

Currency: LRD

Change vs EUR: 14.8%

Change vs USD: 8.8%

New Zealand

Currency: NZD

Change vs EUR: -0.9%

Change vs USD: -6.1%

Nigeria

Currency: NGN

Change vs EUR: 8.2%

Change vs USD: 2.6%

Niue

Currency: NZD

Change vs EUR: -0.9%

Change vs USD: -6.1%

Palestine

Currency: ILS

Change vs EUR: 9.5%

Change vs USD: 3.9%

Peru

Currency: PEN

Change vs EUR: 6.4%

Change vs USD: 0.8%

Pitcairn

Currency: NZD

Change vs EUR: -0.9%

Change vs USD: -6.1%

Russia

Currency: RUB

Change vs EUR: -7.6%

Change vs USD: -12.4%

South Korea

Currency: KRW

Change vs EUR: -1.5%

Change vs USD: -6.7%

South Sudan

Currency: SSP

Change vs EUR: -12.1%

Change vs USD: -16.6%

Sri Lanka

Currency: LKR

Change vs EUR: 9.5%

Change vs USD: 3.8%

Suriname

Currency: SRD

Change vs EUR: -11.4%

Change vs USD: -16%

Sweden

Currency: SEK

Change vs EUR: -1.5%

Change vs USD: -6.7%

Tanzania

Currency: TZS

Change vs EUR: 16.2%

Change vs USD: 10.1%

Uganda

Currency: UGX

Change vs EUR: 7%

Change vs USD: 1.4%

Uruguay

Currency: UYU

Change vs EUR: -1.7%

Change vs USD: -6.8%

Venezuela

Currency: VES

Change vs EUR: -10.7%

Change vs USD: -15.4%

Zimbabwe

Currency: ZWG

Change vs EUR: -42.4%

Change vs USD: -45.4%

Country
Tax Update

Changes in expatriate tax

Cuba

Jersey

Sierra Leone

Ukraine

Cuba

The tax rate schedule has been adjusted significantly, with the top rate reverting from 20% to 50%. The net effect is a large increase in income tax for all taxpayers.

Jersey

Jersey is phasing in a plan for married taxpayers to be taxed independently, moving away from a system that allowed them to file jointly. Independent taxation for married couples will be mandatory as of 2025. The allowable annual maximum deduction for mortgage interest is also being phased out and will no longer be deductible beginning 2026. For 2024, the mortgage deduction maximum has decreased from GBP 4,500 to GBP 3,000. The personal exemptions for taxpayers and dependent children have increased. The maximum for the Long-Term Care contribution has increased. The maximum for social security has increased. The net effect of these changes is a small increase in social security for higher incomes. The impact to tax varies by income level and family size.

Sierra Leone

In May, AIRINC transitioned to Sierra Leone’s newer, redenominated currency, the SLE. This currency is still known as the Sierra Leonean leone (as was the previous denomination). The government introduced this redenomination in the hopes of reinvigorating the economy and slowing inflation. The government continued to support the previous exchange rate (the SLL) through March 2024, at which point they completed the transition. The tax rate schedule has been redenominated.

Ukraine

Update as of October 1, 2024: Ukraine’s parliament has enacted tax hikes to raise revenues needed to fund the country’s war effort. For employees, the military levy has increased from 1.5% to 5%. With the regular income tax rate of 18%, the new combined flat tax rate for employees is 23%. The net effect of this change is an increase in tax. Employees do not contribute to social security in Ukraine. The social security scheme is entirely employer-funded, with a 22% contribution rate up to UAH 316,800 as of April 1, 2024.

Research Location Update

Q4 2024 Researched Locations and Upcoming Q1 2025 Locations

AIRINC researches more than one hundred fifty locations each quarter.

Q.4 2024 Researched Locations
Q.1 2025 Upcoming Locations

Recent Publications
AIRINC India Domestic Relocation Highlights Cover

Benchmark Surveys

Policy & Practice Benchmark Highlights: India Domestic Relocation

With its vast cultural diversity, varying cost of living, and regional market differences, domestic mobility within India presents a unique set of challenges. Read the highlights of our recent benchmark survey to find out more.

If you are with a corporate company, please contact us to receive a copy of the full survey report.

Read more
Webinar: Back to Basics

Recorded Webinars

New Cross-Border Moves — Where Do I Start?!

What are the key elements you need to consider when planning for an employee’s cross-border move?

  • Tactical considerations
  • Talent management
  • Building the compensation package
  • Communication with your assignees and the business
  • Important actors in the Mobility industry
View Recording

White Papers & Articles

A Long Way From Home: Emergencies on Assignment

We have partnered with International SOS, a leader in international health and security risk management, to share insights and guidance to help you plan and prepare for how you would respond to unexpected emergencies.

Read more
Webinar: Back to Basics

Recorded Webinars

June 2024: Back to Basics: Balance Sheet

Whether you’re new to Global Mobility or you’ve been in the industry for a while and need a refresher, watch a 30-minute session where we discussed:

  • Back to basics: the fundamentals of the Balance Sheet Approach and its primary components (taxes, goods & services, housing, and savings)
  • Best practices for maintaining the Balance Sheet over time
  • Scenarios for using the Balance Sheet
View Recording

For More Information

Please contact your Client Services representative for more details and further information.

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