Where Expats Are Moving: Top Cities With Surging Rents 2025

REAL ESTATE1 month ago

In a world where working remotely and international mobility have become the norm, rental demand in certain cities has surged—especially in those favored by expats. From sun-soaked Mediterranean coastlines to bustling Asian tech hubs, rental markets in top international cities are feeling the pressure as foreign professionals flock in. So, where is rental demand rising the fastest, and what does it mean for future housing trends?

Why Expat-Friendly Cities Are in High Demand

Expats—foreign workers, digital nomads, and students—are typically drawn to cities that offer a mix of lifestyle, safety, economic opportunity, and connectivity. Cities like Dubai, Lisbon, Singapore, and Mexico City have become magnets for international residents due to their ease of living, low taxes, and vibrant cultures.

But with higher demand comes increased pressure on local housing markets. As more people seek temporary or long-term rentals in these cities, prices are rising and availability is shrinking. Landlords are taking advantage of this trend, while local renters are often left struggling to keep up.

Top Cities Where Rental Demand Is Rising Fast

Let’s take a closer look at a few cities where rental demand has sharply increased due to expat inflows:

1. Lisbon, Portugal

Lisbon has transformed from a quiet European capital into a digital nomad hotspot. With its mild climate, low cost of living (at least compared to other Western European cities), and Portugal’s Golden Visa program, it’s easy to see why so many foreigners are setting up home here.

Rental Trend:
Over the past two years, rents in Lisbon have increased by over 30%. Popular neighborhoods like Alfama and Bairro Alto are seeing bidding wars for apartments. Local residents are concerned, with many being priced out of central areas.

2. Dubai, UAE

Dubai has long been an expat haven, with over 85% of its population made up of foreigners. The city offers tax-free salaries, world-class infrastructure, and a high standard of living. During and after the pandemic, Dubai became especially attractive for remote workers and wealthy expats from Europe and Asia.

Rental Trend:
In 2024, average residential rents rose by 21%, with luxury apartments in areas like Downtown and Dubai Marina experiencing even higher jumps. Demand is outpacing supply, and short-term rentals are eating into long-term rental stock.

3. Mexico City, Mexico

In recent years, Mexico City has become extremely popular with remote workers from the U.S. and Europe. Its vibrant culture, warm climate, and relatively low prices make it ideal for people working in tech or the creative industries.

Rental Trend:
Some neighborhoods, like Roma Norte and Condesa, have seen rental prices increase by up to 40% since 2022. This trend has caused tension with locals, who say the influx of foreigners is pricing them out of their own city.

4. Bangkok, Thailand

Bangkok remains one of Asia’s top destinations for expats, especially retirees and digital nomads. The city offers modern amenities at affordable prices, a friendly visa system, and a rich cultural experience.

Rental Trend:
Though still affordable compared to Western standards, Bangkok has seen a 15–20% increase in rent over the past year. Expats are favoring serviced apartments and condos in areas like Sukhumvit and Sathorn.

5. Singapore

Singapore is known for its strong economy, excellent healthcare, and safety. It’s also a hub for multinational companies, making it a key city for foreign professionals and expat families.

Rental Trend:
High demand and limited land have caused rental rates in Singapore to soar. In 2023 alone, the average monthly rent for a 3-bedroom condo went up by 25%. Landlords are raising prices quickly between leases, taking advantage of the competitive market.

What’s Driving This Global Rental Shift?

Several global trends are contributing to these spikes in rental demand across expat hotspots:

Remote Work: Many professionals are no longer tied to one office or city, making international moves easier.
Visa Reforms: Countries offering digital nomad or investor visas are attracting long-term foreign residents.
Quality of Life: Expats are choosing places with good healthcare, education, culture, and climate.
Currency Strength: People from countries with strong currencies (like the US dollar or euro) often find better value abroad.

Challenges for Local Residents

While this trend benefits landlords and boosts local economies, it also poses challenges:

Housing Shortages: In many cities, short-term rentals (like Airbnb) reduce the supply of homes available for locals.
Price Displacement: Locals are often pushed to less desirable neighborhoods as rents increase in central areas.
Cultural Tensions: In some cases, the presence of large expat communities has led to debates over gentrification and cultural preservation.

What to Expect in the Coming Years

As international travel becomes even more accessible and digital nomadism grows, expat-driven rental demand is likely to continue increasing. Cities that balance growth with housing affordability will be better positioned to thrive.

Governments may need to step in with policy changes, such as:

Regulating short-term rentals
Offering subsidies for local renters
Imposing taxes on foreign property purchases

Some cities, like Barcelona and Amsterdam, have already started implementing such policies. Others, like Dubai, continue to welcome foreign residents with open arms and minimal restrictions.

Conclusion

Rental demand in expat-favored cities is climbing fast—and it’s reshaping global housing markets. While this boom creates opportunity, it also demands thoughtful planning. Both residents and city leaders will need to adapt to ensure that growth benefits everyone, not just a privileged few.

Whether you’re a landlord, renter, or digital nomad planning your next move, keeping an eye on these trends will help you make smarter housing decisions in today’s global economy.