Knight Frank Prime Global Rental Index
Prime residential rental growth weakest in world’s top financial cities
Key Highlights – Results for Q1 2014:
· Prime Global Rental Index rose by 4.7% in the year to March 2014
· Nairobi topped the annual rankings for the fourth consecutive quarter
· Prime rents declined in Singapore, London and Hong Kong in the year to March 2014
· Dubai and Tokyo recorded the strongest rise in prime rents in the first quarter of 2014
· Rising interest rates could push would-be buyers into prime rental markets in cities such as London and New York in 2015
· 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 Q1 of this year.
· 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, we expect prime rental growth in these key cities to strengthen over the remainder of 2014.
· 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.