Data Points Q.3 2020
A Selection of AIRINC Research Results
This quarter’s cost of living research was conducted primarily in North America, Central and South America, the Middle East, Africa, and maritime Southeast Asia-Pacific.
Housing
Goods & Services
Country Tax
Research LocationsHousing Update
Snapshots of expatriate-quality rental markets around the world
Guayaquil, Ecuador 
The Covid-19 pandemic hit Guayaquil hard in early 2020. Assignees fled and wealthy locals began to downsize due to economic slowdown. The demand for high-end rentals collapsed leading to oversupply and landlords are willing to negotiate rents. Real estate agents mentioned a new law that has halted evictions for at least a year, which is causing landlords to vet prospective tenants more thoroughly.
Amman, Jordan
Demand for Amman rentals fell significantly from February to September. The local airport was completely closed until early September when it reopened for diplomatic use only, reducing access to the city. Rents decreased and some tenants can negotiate down from already lower listed rents. Work from home policies have shifted existing demand from smaller properties to larger units with gardens or rooftop terraces.
Nairobi, Kenya
Rents fell in Nairobi over the past year, but it is common for prospective renters to further negotiate rents down from the lower listing price. The coronavirus pandemic decreased the number of incoming expatriates. Vacancy rates are up more in the city than in the suburbs due to a migration to suburban areas with lower population densities.
Muscat, Oman
Massive assignee departures are being driven by government mandates to fill expatriate positions with Omani nationals while visa restrictions are preventing new assignee arrivals. In addition, the economy has slowed due to the coronavirus pandemic’s effect on the oil and gas industry. Rents are down and many landlords are willing to negotiate.
Manhattan, NY
Manhattan has seen an exodus of executives due to the coronavirus pandemic. Demand and rents dropped for high-end rentals as many executives relocated to suburban areas since they are no longer required to work in downtown offices. Since social distancing is more difficult in high-rise apartments, these buildings often have many vacancies, and construction of new buildings has slowed. Previously unseen concessions have appeared for some vacant units, such as 1-2 month’s free rent and waived fees.
San Francisco, CA
Rents dropped as supply increased in central city areas. New construction of high-end rentals entered the market as renters fled the inner city due to the coronavirus pandemic, contributing to the high supply. Many landlords and management companies have lowered asking rents. Others are offering incentives such as 1-2 month’s free rent, upgraded appliances, and waived agent’s fees.
Sydney, Australia
Rents in inner-city Sydney fell more significantly than in the suburbs as tenant preference shifted from apartments in metropolitan areas toward houses in suburban areas. Rents are more stable at the lower end of the market due to increased competition for more affordable homes, while rents have fallen more steeply at the high end of the market due to oversupply. Many former Airbnb hosts are advertising their properties as long-term rentals, adding to an already increasing supply.
Jakarta, Indonesia
Jakarta rents fell due to low demand and high supply. Apartment rents decreased more significantly than rents for single-family houses since the supply of apartments is growing while home supply remains limited. Some luxury apartment complexes have maintained higher rents as landlords opt to offer incentives to prospective tenants such as free internet or new furniture. There are fewer expatriate arrivals and most incoming assignees are not traveling with their families.
