Rental costs in cities throughout the world are on the rise again as expat executives increase demand for rental properties.
New research by residential and commercial property consultants Knight Frank indicates that many major cities throughout the world are seeing a surge in the prices associated with rental properties. New expat relocations in fresh sectors, such as the automobile industry in Shanghai and legal sector in Hong Kong, have led to increasing numbers of expatriate relocations and higher demand for high-end rental properties.
According to the Global Corporate Lettings Review, which was published by Knight Frank, the major expat destinations of Dubai, Beijing, Shanghai and Hong Kong have seen the biggest increases in the price of rental properties, with the cost of an executive apartment in prime locations in these cities rising by 14.3%, 8.5%, 6.1% and 3.7% on average per month respectively. Expatriates relocating to Dubai can now expect to pay around $3,628 USD per month, with the rise in rents in this city being the highest in the world, while those living in Hong Kong face rental prices of around $6,223 per month.
Globally, the average rent has increased by 5.1% over the past year with New York having the highest rental costs of the cities included in the research, at around $8,200 USD per month.
The Global Corporate Lettings Review was based on 11 major expat destinations throughout the world and examined the “typical” prices that expatriates who rented in these locations could expect to face. According to Kate Everett-Allen, international residential analyst at Knight Frank, corporate accommodation now accounts for around 85% of prime apartments in many cities throughout the world. Commenting on the research results, she said: “We saw a big drop-off in [human resources] budgets post-2008. Now that’s starting to come back, but it’s coming back stronger in these emerging markets as opposed to traditional markets.
“Downtown Dubai has matured quite a lot over the past 18 months. Location is pretty much key.”
The research also indicated that expatriates who have relocated to major cities throughout the world seek ease of living. Furthermore, 100% of the corporate executives who have relocated to Beijing and 90% in Shanghai seek furnished apartments, while this figure is just 10% in New York.