Data Points Q.1 2020
A Selection of AIRINC Survey Results
This quarter’s cost of living surveys were conducted primarily in North America, Central and South America, the Middle East, Africa, and maritime Southeast Asia-Pacific.
Housing
Goods & Services
Country Tax
Survey LocationsHousing Update
Snapshots of expatriate-quality rental markets around the world
Sao Paulo, Brazil 
The past 18 months have seen a rise of new construction projects within Sao Paulo, particularly focused on smaller high-end apartments geared towards single assignees. Many of these units entered the rental market with higher rents since quality is very good and they offer many amenities. Despite this new supply, overall availability of expatriate-appropriate properties is low relative to the high demand. This is especially true for larger properties in the popular expatriate neighborhoods in the South and Southeast.
San Juan, Puerto Rico
There has been a shortage of housing in the wake of Hurricane Maria as assignees continue to arrive in San Juan. Insurance premiums have gone up drastically, which increased the operating costs of rentals. As a result, landlords raised the rents. Some new constructions projects have been delayed, but others are still ongoing. Popular expatriate area Condado Beach is like the Manhattan of Puerto Rico, with close proximity to many companies. The demand for Condado is very high and rentals can be difficult to find.
Algiers, Algeria 
Rents decreased in Algiers over the past 6 to 12 months. Political instability caused expatriate departures and an increase in vacancy rates. Economic slowdown has also caused falling demand for rental housing from the local population. This instability reduced foreign investments and the situation is likely to continue as long as there are political protests.
Luanda, Angola
Demand for expatriate quality rentals dropped in Luanda as some companies exit Angola. Supply of expatriate housing has always been low, which is why Luanda is still one of the most expensive countries in the world for assignees. However, the soft market has made rents more negotiable, especially for 1- and 2-bedroom apartments. To entice tenants, landlords are more open to including cable TV or internet in the rent rather than lowering the asking rent, but across the market, rents are more negotiable. Many construction projects have stalled or stopped completely, with unfinished buildings littering the city’s landscape.
Cairo, Egypt
Political instability and falling oil and gas prices over the past 12 months have lowered rents in Cairo. Many new compounds are under construction close to international schools. A law was passed to increase the quality of new housing construction and to regulate completion timing. Landlords must complete projects within 3 years, or they will be fined.
Beirut, Lebanon
Over the past year, protests were triggered by social inequalities, the slowing economy, and increasing taxes. This led to an increase in vacancy rates and a decrease in demand as expatriates departed the rental market. Sources suggested that remaining assignees are safe since residential compounds and apartment towers have good security and are not located in protest areas.
Johannesburg, South Africa
Rents decreased in Johannesburg as demand dropped from the international business community. Many completed housing projects remain vacant and unsold. Sources noted that companies have been scaling back operations and sending fewer expatriate families. Johannesburg is also affected by “load shedding,” which are scheduled rolling blackouts designed to prevent a country-wide collapse of South Africa’s power system.
Dubai, U.A.E.
Dubai’s rental market remains very soft with oversupply. Landlords are more open to negotiability and are making concessions to find or keep tenants. Some allow payment with multiple checks instead of full prepayment of 12 months’ rent. Others offer 1-3 months of free rent. Although the market in general is declining, rents remain stable for more established, popular buildings and higher-end properties.
