Western Europe

After a sharp price increase observed throughout 2008 the results of the March 2009 survey showed low rates of inflation in the Mercer International basket. 

Western Europe rental real estate markets have reacted differently to the economical crisis that started in 2008. Some markets are strongly influenced by the economy slowdown, and have seen their rental prices decrease. This is what was seen in Dublin (Ireland), London (United Kingdom), Oslo (Norway) or Madrid and Barcelona (Spain).

There are some healthy rental markets where demand has remained unchanged and have not experienced major fluctuations during 2008, including  Germany (Berlin, Munich, Frankfurt, Düsseldorf, Hamburg & Leipzig), Denmark (Copenhagen), France (Paris & Lyon) and Belgium (Brussels).

Eastern Europe

The inflation rates in Eastern Europe have stabilised in most of the cities. However, we do observe some relatively high levels of inflation in Bucharest in Romania, Kiev in Ukraine and Moscow and St Petersburg in Russia. 

In relation to housing, most Eastern European markets have suffered from the economic crisis in 2008 and rents have decreased. The main reason is greater supply of accommodation than demand. Analysts predict that rents will fall again. This is particularly true for Moscow in Russia, Riga in Latvia, Warsaw in Poland, Almaty in Kazakhstan, Kiev, Bucharest, and Budapest in Hungary.

Middle East & Africa

The inflation measured in the Mercer International basket in Africa and the Middle East region is also stabilizing. However some countries still show high figures of inflation, such as Accra in Ghana and to a lesser extent Cairo in Egypt.

Rental markets in the United Arab Emirates have suffered from the economical crisis with increased accommodation supply and reduced demand. Dubai has shown the biggest drop in prices. Saudi Arabia (Riyadh & Jeddah) and South African (Johannesburg) real estate markets remain stable.