Luxury residential rents rise globally, Moscow ranks first in the world
According to the Knight Frank’s Prime Global Rental Index report , which tracks the change in luxury residential rents across 17 cities globally, prime rents rose by 0.5% in the year to June 2016 , the first time it has recorded positive annual growth in the last year.
Moscow leads the rankings with prime rents rising by 11.1% on an annual basis. Nairobi continues to be the weakest performingmarket with prime rents falling by 9.2% annually. Since Q3 2011 Nairobi has recorded annual prime rental growth of 9.7% on average, the market is now looking to rebalance.
The slowdown in the prime central London rental market continues with rents falling by 3.0% in the 12 months to June 2016with higher stock levels and uncertainty in financial markets contributing to the fall.
North America, for the third consecutive quarter, registered the strongest increase with prime rents rising by 4.4% in theyear to Q2 2016. Over the same time period, Africa recorded the weakest performance with prime rents falling by 3.9% on average.
Knight Frank Prime Global Rental Index, Q2 2016;
Region 12-month% change(Q2 2015-Q2 2016)
1-Moscow- Europe 11.1%
2-Tokyo- Asia Pacific 9.0%
3-Guangzhou -Asia Pacific 4.8%
4-New York -North America 4.7%
5-Toronto -North America 4.1%
6-Vienna -Europe 2.5%
7-Shanghai -Asia Pacific 1.6%
8-Cape Town -Africa 1.5%
9-Tel Aviv -Middle East 0.7%
10-Beijing- Asia Pacific 0.7%
11-Taipei- Asia Pacific 0.0%
12-Geneva- Europe -1.5%
13-Singapore- Asia Pacific -2.3%
14-London- Europe -3.0%
15-Hong Kong- Asia Pacific -7.3%
16-Zurich- Europe -7.7%
17-Nairobi- Africa -9.2%