Global rents for high-end homes grew at their slowest rate in more than five years in the second quarter, research out yesterday claimed.
Knight Frank’s index of prime residential rents rose by 0.2 per cent in the year to June, down from 3.2 per cent two years earlier and marking the slowest rate of growth since the first quarter of 2010.
Moscow recorded the biggest drop, down 11 per cent, as the weakness of the rouble against the dollar put pressure on developers and occupiers. Next in line were Beijing and Singapore, down 8.4 per cent and six per cent respectively.
However, 10 of the 18 cities tracked by the index bucked the trend, with Cape Town and Zurich recording the biggest growth of 10.2 per cent and 8.3 per cent respectively.
In fourth place, London rents rose by 3.4 per cent. However, more recent data shows rents slowed to 2.5 per cent in August as tougher stamp duty rules weighed on demand.
“The index’s performance closely mirrors global GDP and with sluggish growth considered the new normal, heady days of five per cent annual growth look unlikely to be repeated for some time,” Knight Frank partner Kate Everett-Allen said.