AIRINC conducted August surveys in many Brazilian cities where expatriate rental markets are softening due to lower demand. After several years of political and economic unrest, many markets are oversupplied, allowing tenants the power to negotiate. In Rio de Janeiro, some tenants can negotiate lower rents or leases that include better furniture or other extras not previously provided. Tenants at the end of a lease may even be able to move to more desirable neighborhoods for a similar rent, depending on the landlord's needs and the length of time a rental property has been empty. A building and buying boom prior to the World Cup and the Olympics has dwindled to very few projects, since supply is already greater than demand. Landlords continue to be open to negotiation in Sao Paulo in the face of low demand, though tenants should not expect large discounts for high-end rentals.
Panama City’s strong economy allowed investment in large building projects in recent years, and many buildings are now becoming available. The completion of the Panama Canal expansion in 2016 has triggered the departure of many expatriates just when new housing supply is arriving on the market. Both rental and sales markets for apartments and houses are softening due to this oversupply. Expatriates were formerly spread out in many areas at the oceanfront and in the developing downtown area, but the oceanfront area is now coming to the fore as the favorite, especially in Santa Maria and Costa del Este. Because of the excess supply, tenants can negotiate rents more easily than before.
Rents in Muscat have dropped in the past six to twelve months. Many expatriates are leaving and supply is increasing with several new construction projects ready to be rented out. Since villa rents have dropped over the past year, many assignees are choosing to rent villas over apartments, leaving more apartments available. Because many landlords are only breaking even on their investments, they are increasingly offering incentives such as a month of free rent or the waiver of fees for amenities like parking or pool maintenance.
With many companies concerned about political stability and the outcome of the 2018 elections, fewer expatriates have been arriving in Zimbabwe over the past six to twelve months and demand for rental properties has dropped significantly. Supply greatly exceeds demand, and more supply is expected as new construction projects are completed across Harare. Some landlords would rather leave properties vacant than lease at lower rents, increasing the vacancy rate even further. Many expatriates are moving from houses into newer apartments with better amenities.
San Francisco's strong rental market softened over the past six months as more supply entered the market. Many tenants have struggled to afford such expensive rentals, and with the increase in supply some landlords are offering slightly lower rents. Much of the new supply has been in the SOMA area, preferred by more junior executives, while senior executives prefer areas like Presidio, Pacific Heights, and Sea Cliff. More rental supply is expected by the end of the year.