KEY TAKEAWAYS
- Seasonal factors, including the year-end festive period and a slower inflow of expatriates and international students, contributed to a sharp 27.4% quarter-on-quarter decline in islandwide leasing contracts in Q4/2025. The pullback was broadbased across segments and regions.
- In tandem with the subdued leasing activity, islandwide rents for nonlanded private residential properties came under downward pressure, reflecting a sizeable stock of vacant leasable units.
- The modest year-on-year gains in 2025 provide a baseline for 2026. With new completions expected to remain steady at around 6,083 units—broadly in line with 2025’s relatively low supply—rents are likely to hold broadly firm in the first half of 2026, particularly if vacancy rates stay below 6.5%. Local and permanent resident demand for interim rental accommodation, mainly those awaiting completion of their private homes may help offset softer leasing demand from a lower inflow of expatriates. Overall, rents for non-landed private residential properties are forecast to remain broadly flat in 2026
