According to Knight Frank’s Prime Global Rental Index, prime rents in key cities worldwide rose by 5.1% in 2012, up from 3.5% a year earlier. A tight mortgage market along with limited supply (in the established markets) and rising property prices (in the emerging markets) pushed many would-be purchasers into rental accommodation. Kate Everett-Allen, Associate Partner, International Residential Research assesses the latest data.
Results for Q4 2012
• The Knight Frank Prime Global Rental Index rose by 1.6% in the final quarter of 2012 and by 5.1% over the course of the year
• The index now stands 20% above its post-financial crisis low in Q2 2009
• Nairobi saw the largest increase in prime rents, rising 17.9% in 2012
• Since Q2 2009, Hong Kong has seen the largest increase in prime rents (up 42.2%) and Moscow the lowest (up 3.3%)
• In 2012, of the cities tracked, only London recorded a fall in prime rents, down 3.2% in the 12 months to December