Following what was essentially an understandable freeze on international relocations during the Covid pandemic of 2020-2021, there was a discernible increase in relocation activity worldwide in 2022, and this ‘correction’ for want of a better descriptor, was still being felt in early 2023. As the year has progressed, this surge has subsided and relocation companies have experienced anywhere from a 10% - 30% decline in international placements year-to-date. This downturn was inevitable and has been subject to both macro and micro influences.
The ongoing hostilities associated with the Ukraine war and its resultant sanctions have created an environment of caution amongst those looking to relocate to Eastern Europe. Most recently, the tensions in the Middle East due to the Israeli-Palestinian conflict and its ripple effects will only serve to exacerbate this situation even further. It is anticipated that only those relocations deemed most essential will be entertained in the European context.
While many countries resist openly admitting that they are experiencing recessions, it is undeniable that inflationary pressures are influencing the decisions of those who are hard pressed by the ever rising cost of living. The physical costs of relocating have dramatically increased over the past couple of years. Housing and rental costs tend to be high as availability in popular destinations is extremely low. The high costs of international flights are another factor to consider for those relocating to foreign shores. For many, flights home to enjoy the company of friends and family over the holiday periods will prove prohibitively expensive. On a rare positive note, ocean freight costs have reduced dramatically from their giddy, pandemic-induced highs, and appear to be returning to their 2019 levels.
Bucking the worldwide trend in declining relocation activity, Intouch Relocations Africa, building on a positive performance in 2022, has experienced a 24% growth in relocation instructions for YTD, October 2023.
This significant growth warranted the establishment in 2022 of a Cape Town office to provide regional support for our South African head office, located in Johannesburg. The subsequent signing of several significant clients headquartered in Cape Town has more than justified this investment and is a positive indicator for the future.
As a company dedicated to providing service excellence to both our corporate and private clients for over 25 years, we are encouraged by our consistent growth and the loyal support we receive from our ever-expanding list of blue chip clients. With a presence in 26 countries across Africa, Intouch Relocations Africa is perfectly positioned to address any relocation requirements across the continent.
