Globally, the corporate lettings market is showing signs of a resurgence as companies look to recruit senior employees from around the world. Respondents to our survey reported that relocation budgets for senior executives have increased over the past year, with a net 60% noticing an uptick in allocated funds. Some 20% felt they had stayed the same and 20% reported a fall over this time. This follows a period at the start of 2009, during the recession, when companies cut back on employing overseas staff and appetites to spend heavily on prime rental property among corporates fell sharply. Deploying expatriate employees is becoming an increasingly important aspect of multinational companies’ business strategies, especially as growth comes back onto the agenda for firms. But with volatile markets and stunted economic growth in many parts of the world still an issue, a keen eye on cost efficiency is essential, including on expatriate remuneration packages. The flow of talent is still predominantly from West to East, but companies are starting to tap into rich talent pools in emerging markets and have been committing greater resources to finding and renting prime properties to attract and relocate senior staff. According to the Mercer Talent Barometer, 60% of organisations are spending more on talent in recent years, with this viewed as keyto success in today’s global economy.
Source: Knight Frank