Rents dropped in Dublin in the wake of COVID-19. Supply increased as assignees left the city and new rental stock entered the market. The collapse in tourism has forced owners of short-term Airbnb properties to shift to the long-term market, further increasing supply.
The COVID-19 pandemic slowed Kiev’s rental market and vacancies increased. With few expatriate arrivals, most rental market activity has been from local renters. While some landlords kept rents at pre-pandemic rates, others lowered rents to fill vacancies. The rental market is expected to remain fairly stagnant until mobility restrictions are lifted and the pandemic is more contained.
Rents decreased in central London and increased in the suburbs as work-from-home policies inspired expatriate movement from the city center to greener, more open spaces. There have been fewer expatriate arrivals, and most incoming assignees are diplomats engaged in Brexit negotiations. Sources say rents may continue to drop, depending on the outcomes of Brexit and the COVID-19 vaccine.
The COVID-19 pandemic amplified a soft rental market. There have been fewer expatriate arrivals since several large companies left the area, and many assignees broke their leases and left the city at the beginning of the pandemic. Rents for large apartments fell most drastically because families account for most recent expat departures. Landlords who previously only rented to expats may now accept local tenants at reduced rents.
Rents fell significantly with the decline of expatriate arrivals due to pandemic-related travel restrictions. Demand also decreased with an economic slowdown in the tourism sector and a financial strain on the oil industry. Landlords struggling to find new tenants have been extremely flexible with lease terms. Completion of new construction projects is expected to add to the oversupply in the next few years.
Data Points Q4 2020: Expatriate Trends & Survey Data Highlights
The above excerpt is taken from AIRINC's quarterly newsletter, Data Points, bringing you the latest updates from our Housing, Goods & Services, and Tax departments. January 2021's edition also featured:
- 24 Currencies showing 3-month exchange rate fluctuations of more than 5%
- Goods & Services inflation higher than 5% for 6 months in Argentina, Turkey, and India
- Tax updates along with global COVID-19 individual income tax responses
- ...and more