According to the recent
Knight Frank Prime Global Rental Index, prime residential rental growth in emerging markets such as Nairobi and Dubai have continued to trump the traditional global financial centres of London and Hong Kong.
Prime rents in the Kenyan capital, Nairobi, increased by almost 26% in the year to March but there are signs the market is cooling with growth of only 2.1% recorded in the first quarter of 2014.
Some of the world’s top financial centres – Singapore, London and Hong Kong – are positioned at the bottom of the rankings with annual falls of -0.3%, -2.0% and -6.3% respectively.
However, Knight Frank expect prime rental growth in these top financial global cities to strengthen over the remainder of 2014 as rising interest rates could push would-be buyers into prime rental markets by 2015.
In London, the rental recovery looks to be taking hold as price growth starts to slow. New registrations are up 17% year-on-year and tenant demand is coming from a diverse set of industries – oil and gas, mining and IT.
In Hong Kong, the luxury rental market is attracting those deterred from buying, which according to Knight Frank, should help support future rental growth.
Dubai and Tokyo recorded the strongest rise in prime rents in the first quarter of 2014.
