London's prime residential rents have risen to their highest level in three years thanks to the improving economy and record employment levels, research out yesterday claims.
Although growth in the capital slowed to just 0.5 per cent in the three months to the end of December, rents rose 3.3 per cent year-on-year – the highest rate since 2012 – Knight Frank’s Global Rental Index showed.
However, the quarterly survey showed that overall across the 17 key cities that it surveys was less impressive. Global rents rose by 0.6 per cent in 2014 – their weakest annual rise since 2009 – dragged down by Moscow.
Moscow’s prime rents are measured in US dollars and the fall is directly linked to the weakness of the rouble, Knight Frank said. Rents in the Russian capital fell by 16 per cent last year.
Beijing was the second biggest faller, down 6.3 per cent, followed by Vienna, Geneva and Singapore.
“The weakness of this quarter’s results hides the fact that 12 of the 17 cities saw luxury residential rents increase or remain static,” Knight Frank partner Kate Everett-Allen said.
The best performing city was Tokyo thanks to the country emerging from a recession last year, with rents up 11.1 per cent year-on-year. Dubai and Zurich came in second and third place, with London the sixth best performing city.