Expatriate Housing in Q3 2026: Tight Supply Keeps Rents Rising Across Key Markets

Each quarter, AIRINC’s Data Points highlight selected findings from our ongoing research, offering a snapshot of the market changes shaping international assignments around the world.

In this instalment of our Q3 2026 Data Points series, we focus on expatriate housing. Across many of the locations surveyed, limited supply, strong demand, rising construction costs, and local market disruptions continue to influence rental prices. Here are some of the key housing trends our research teams are seeing.

Australia

Perth’s expatriate rental market continues to rise. Demand remains high despite some improvement in housing supply. Low vacancy levels continue to support elevated rents. Rental growth is expected to moderate as more supply enters the market, although population growth and demand are likely to keep conditions competitive.

Melbourne, Sydney, and Brisbane also recorded increases, although these were more moderate.

Barbados

Residential rents are rising sharply due to a severe housing shortage. Property owners are increasingly favoring short-term vacation rentals over long-term leases.

Demand from remote workers using the Welcome Stamp program, regional investors, and international students is adding further pressure. Higher construction and maintenance costs are also contributing to rent increases.

Cali, Colombia

Competition for rental accommodation is very strong.

• The August 2026 earthquake damaged or destroyed many mid- and high-rise apartment buildings.

• Displaced renters are competing for a smaller pool of available properties.

Although local authorities called for a rent freeze amid reports of price gouging, asking rents for new leases remain significantly higher than before the earthquake.

Cape Town, South Africa

Expatriate long-term rental growth continues to outpace the South African national average.

• Strong expatriate and corporate demand remains concentrated in Sea Point, Green Point, Camps Bay, and the Atlantic Seaboard.

• Quality stock remains limited in the luxury corporate rental and secure family-home segments.

Lagos, Nigeria

Rents have risen in key expatriate areas over the past few months.

• Ikoyi and Banana Island have seen some of the strongest growth.

• Demand continues to increase while limited land and constrained supply keep availability tight.

• Much of the new development involves replacing older single-family homes with high-rise apartments.

• Construction costs remain elevated.

Rents are expected to continue rising in the near term, although at a slower pace.

Nairobi, Kenya

Rents remain firm, particularly for houses suitable for expatriate families. Demand is supported by expatriates and international development professionals relocating to the city. The apartment market is oversupplied, but quality houses remain limited.

• Westlands and Kilimani continue to experience strong demand.

• Families connected to international schools are helping support the market.

Despite some election-related caution, conditions remain stable.

Suva, Fiji

Long-term residential rents are rising quickly due to high demand and limited supply.

• Professionals and diplomats continue to create steady demand.

• Growth in short-term Airbnb rentals is reducing long-term housing availability.

• High construction costs are keeping more households in the rental market for longer.

• Rent controls may also discourage new residential investment and encourage landlords to increase prices during tenant turnover.

United Arab Emirates

The UAE is one of the few surveyed markets showing an overall downward rental trend.

• Lower-end apartments are holding up better than higher-end units.

• Higher-end rents are declining more quickly.

• Dubai has shifted more clearly in favor of tenants due to increased supply, softer demand, and economic uncertainty. Renters and employers now have more choice and negotiating leverage.

• Abu Dhabi remains more resilient. The June rent freeze has provided greater cost certainty for many mainland tenants.

• Prime island, waterfront, and Abu Dhabi Global Market properties remain more competitive.

Caracas, Venezuela

Earthquake damage in June 2026 further reduced available housing stock. Some neighborhoods experienced severe building damage and collapse.

• The home-buying market remains largely frozen.

• Inflationary pressure is pushing more demand toward secure long-term rentals.

• Eastern Caracas remains particularly sought after.

Key Takeaways for Global Mobility Teams

Expatriate housing trends can differ significantly from national residential market averages. Secure family homes, premium apartments, and properties near international schools often face their own supply constraints.

Local events can change market conditions quickly. Regular reviews of housing allowances are increasingly important.

Mobility teams should focus on the specific housing segments expatriates actually use rather than relying only on national rental indicators.