As the world tries to shake off economic slowdown there have been considerable changes in rental property markets. Asian cities once again make the top ten of the world’s top most expensive places for expat rental property along with New York, Moscow—the most expensive city for expat rental properties, Geneva and London.

Some 300 cities worldwide were surveyed by Mercer, to create a rental property index of fifty of the most popular locations where multinational companies send their employees on overseas assignments.  

According to Mercer’s Marie-Laurence Sépède, the comparative cost of expat housing has been significantly affected by strong currency fluctuations over the past few months as well as the sliding of housing markets since 2008. Whilst the euro has dropped 12 percent against the US dollar, other currencies have also dramatically lost out, such as the Polish zloty, Mexican peso, Australian dollar, Brazilian real and the British pound, which have all dropped more than 30 percent since September last year.

Mercer’s rental property index bases its data on typical rents for one- to four-bedroom apartments and three- to four-bedroom houses, furnished and unfurnished, in different international cities. New York was used as a benchmark with a score of 100 points. However, cost comparisons made using the US dollar means that currency exchange rates have had some influence on the rankings.

Asia Pacific: Prices amongst highest worldwide

Tokyo leads as the second most expensive rental city in the world for expats (score of 156.10) followed by Hong Kong (142.10) which has dropped to third place due to a reduction in demand.  Singapore (94.10) is now tenth, whilst Beijing (98.30) has climbed to 6th place with rental prices fairly stable as its currency is linked to the US dollar. In India, expat property continues to be in demand with Mumbai (105.10 now 4th place competing with New York, and New Delhi (96.60) now ranked 8th.
 
Other key international cities in the region have experienced significant changes in their rankings. With the devaluation of the Korean Won by 30 percent, Seoul’s ranking has dropped five places to 16th (73.30). Jakarta (49.50) has leapt to 35, up seven places and Ho Chi Minh City (55.10) is up eleven places to 23rd position.

Further south in Australia, Sydney (49.70) remains the most expensive rental city in the country, but due to Australian currency losing 30 percent against the US dollar, the city has dropped seven places coming 32nd in the world.

Europe: Rental prices dropping slightly

For expats Moscow remains the world’s most expensive rental city (168.30), but in general rental prices for expats in European cities appear to be getting cheaper compared to Asia. With the fall of the British pound against the dollar and increase in available rental property, London (95.60) dropped five places to 9th position, but remains the third most expensive in Europe after Geneva (96.80).

Other notable European cities ranked within the top twenty include Paris (13th), Kiev (14th), Milan (15th) and Copenhagen (20th). Warsaw dropped 13 places to a ranking of 31st due a fall in its currency valuation against the dollar.

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