A sluggish global economy kept a lid on prime rents around the world last year, but New York and London should see values rise in 2015, according to Knight Frank’s latest check.
Although the firm’s Global Prime Rental Index – which tracks the performance of 16 world cities – saw an uptick of 2.1% in the year to September 2014, the rate of annual growth has slowed considerably.
Here’s the highlights from Q3 2014:
- Prime global rents rose by 2.1% in the year to September 2014, down from 5.8% a year earlier.
- Dubai leads the annual rankings with rents rising by 12.4% year-on-year.
- Moscow and Geneva have replaced Hong Kong and Singapore at the bottom of the annual rankings.
- Tokyo and New York saw prime rents accelerate by 9.8% and 7.9% respectively in the 12 months to September.
- Of the 15 cities tracked by the index, KF expects New York and London to record the strongest increase in prime rents in 2015
Of the cities tracked by the index, New York continues to command the highest luxury rents in real terms with a typical two bed apartment in Manhattan costing around US$8,000-US$8,500 pcm. London and Moscow bag second and third place with prime rents around US$6,500-US$8,000 and between US$6,000 and US$7,000 pcm respectively.
Sources: Knight Frank Residential Research, Miller Samuel/Douglas Elliman, Ken Corporation
* Data is based on all rental contracts agreed above ¥ 300,000 or where the internal area is 30 tsubo+
** London: new prime rental data is now available