Dwellworks Living Global Corporate Housing Solutions - Dublin Ha'PennyBridge

Supply Versus Demand in European Corporate Housing for Summer 2023

After unprecedented and, in many ways, unimaginable levels of activity in Europe in 2022, the temporary housing demand landscape is less volatile in 2023, but the supply environment remains largely status quo. Why the imbalance? Corporate housing operators create their inventory of furnished serviced apartments from the same stock of multi-family housing units that are rented unfurnished. Despite the large growth in the rental populations of Europe’s gateway cities, from Dublin to Vienna, there is limited new apartment construction activity, except in a few key markets such as London. Between new laws for setting rental rates and annual increases, and the high cost of financing, developers are being cautious about large-scale investments, knowing they do not have total control over their return.

What does this mean for corporate employers looking for temporary accommodations for their global travelers and employees moving on temporary or permanent assignments? They are presented with a less frenzied market in terms of volume and timing, and a lessened, though still considerable need for housing for refugees from Ukraine, but no appreciable increase in capacity or decrease in unit costs.

Market Case Study – Dublin, Ireland

Let’s look at Dublin as an example.

Ireland has been on a successful economic trajectory for the past 20 years, as it promoted its tax incentives for foreign investment, its well-educated population, and, in the wake of Brexit, its presence as the only English-speaking option in the EU. Ireland has also enjoyed a second round of tech expansion since the Great Recession.

The supply of apartments has grown, but never at a fast enough pace for the combined demand of local professionals and inbound expats. In 2022, as companies shook off their pandemic travel bans, Dublin was literally overwhelmed with activity from technology, biopharma, financial services, and consulting companies. On top of this, Ireland welcomed nearly 100,000 Ukrainian families in 2022. The government seconded housing for this purpose and has continued to repatriate Ukrainian refugees throughout 2023.

This year, Ireland has not been immune to tech sector layoffs, but they have not crushed the employment market. In fact, in a recent Manpower study, 81% of Irish employers said they were understaffed and in need of professional talent.

As a result, average apartment rent in Dublin increased YOY by over 11%. Corporate housing rates are lower than peak prices in mid-2022 but remain significantly higher than average daily rates (ADR) at the start of the pandemic in early 2020. The enormous demand from summer 2022 eased off with the arrival of a traditionally quieter winter period, which continues throughout the spring/summer months this year. Currently, the ADR for a good quality 1-bedroom corporate apartment in Ireland is just under $200 USD, and lower, of course, for longer-term bookings. This rate is comparable to current pricing in locations like Amsterdam, Paris, and London.

Beat the Booking Stress with Dwellworks Living

Dwellworks Living is a global solution for corporate housing needs, thanks to our deep, reliable network of professional corporate housing operators. Our network in Dublin of 95 operator partners and access to over 1,200 units is typical of our presence on the ground across Europe, where we work with a network of 1,500 operators in total. We know sourcing units is more than matching up ‘hosts’ and ‘guests’ on tech platforms and leaving the corporate guest’s experience to chance. This might be an acceptable risk for personal leisure travel but is typically not tolerated in corporate travel with its high expectations for compliance and duty of care.

Our team of 40 destination services professionals in this market, with a similar presence in other European capitals and key cities, is an additional, critical differentiator and the reason we can find housing options in otherwise tight markets. Our Consultants and supply chain experts know landlords and property managers through years of consistent performance and booking activity, successful customer experiences, and well-earned trust.

Expect the Rental Challenges to Continue

Macroeconomic influences mean the shortage of rental options will continue well into 2023. As leases expire, rental pricing in current housing stock can be adjusted by landlords to local norms. Despite these market-governed prices, demand remains high in the key markets we service, and options can be limited. External events, like the Rugby World Cup in France and the  upcoming 2024 Olympics, will drive up demand and prices as well.  We’re advising our clients that while Dwellworks Living continues to source multiple options for each request for housing we receive, housing choices move briskly, and a fast confirmation process, including reviewing and confirming selections quickly, will guarantee the best placement. We recommend clients confirm selections and make requests for housing with at least 30 days’ notice whenever possible.  

We know the pace of business does not always match up to rental market conditions, but coordinated planning will yield more choices, higher ‘match scores’ for customer and employer requirements, and better pricing. The firmer the booking commitment, the better the terms secured.

For more information on the European rental market overall, read our Q3 rental markets summary  here. For insights on how to identify the best corporate housing partner for your business needs, click  here.

To get the best solutions in EMEA for your alternative accommodations and corporate housing program, contact  Vincenzo Marino. Corporate housing partners can reach out to  Vidak Glavinic.

Dwellworks Living: Global Solutions for Corporate Accommodations 

Dwellworks Living is committed to providing our clients and their employees with the best possible corporate housing and serviced accommodations experience. With a global network of property partners, a tri-regional team of customer experience and supply chain professionals, and a wide range of services for global mobility and travel customers, Dwellworks Living can provide the perfect corporate housing solution for any need or budget.

Dwellworks Living is the global corporate housing solution of Dwellworks, an award-winning, business-to-business provider of global mobility and business travel services. As a global leader in corporate housing and serviced accommodations solutions, Dwellworks Living is uniquely positioned to meet the temporary living needs of businesses and their employees who are relocating or traveling on short-, medium- or extended-stays. With 60,000 high-quality professionally managed properties in over 125 countries worldwide, Dwellworks Living is the preferred housing solutions partner of many Fortune 1000 and leading relocation management companies.

Dwellworks Living's corporate housing and serviced accommodations solutions are designed to help businesses attract and retain top talent, support employee productivity, and ensure a smooth and successful relocation or business travel experience. In addition to our core global accommodations management services, Dwellworks Living, through our worldwide network of local experts, is uniquely capable of offering our clients expanded and related services, such as area orientations, group move assistance, destination services and intercultural training.

Whether you have corporate housing needs for an individual employee or a large team, Dwellworks Living can provide the serviced accommodations solutions you need anywhere in the world to ensure a safe and successful stay. Please contact us to learn more or visit our Properties page to begin your search for global corporate housing accommodations.

Sign Up for Our Newsletter

Stay updated on all of our latest news and resources!