Cape Town has enjoyed the biggest rise in annual rents for luxury homes in the world, according to Knight Frank.
The South African city has seen prime residential rents rise by 5.9 per cent annually followed by Zurich (5.1 per cent) and Guangzhou (four per cent).
The number of cities where prime rents have increased on an annual basis rose from six in the first quarter of 2016 to 12 in the same period this year, Knight Frank said.
The index, which tracks luxury residential rents across 17 cities globally, found that prime rents in London continue to bottom out with the annual rate of falls slowing to minus 4.9 per cent to March 2017.
Knight Frank blamed a series of tax hikes, which led to an increased supply of properties for rent, for the slow rental growth in the capital.
Between January and May 2017, the number of new rental properties coming to the market in prime central London dropped six per cent compared to last year.
Knight Frank said: "Relatively high stock levels [in London] have been a feature of the market since early 2015, as increased sales taxes and short-term uncertainty over pricing in the sales market prompted many would-be vendors to become landlords."
Ranked: Rental growth in global cities
|Rank||City||12-month percentage change|
|1||Cape Town||5.9 per cent|
|2||Zurich||5.1 per cent|
|3||Guangzhou||4 per cent|
|4||Toronto||2.4 per cent|
|5||Moscow||2.1 per cent|
|6||Beijing||2 per cent|
|7||Tel Aviv||1.7 per cent|
|8||Tokyo||1.6 per cent|
|9||Vienna||0.8 per cent|
|10||Hong Kong||0.6 per cent|
|11||Shanghai||0.1 per cent|
|12||Taipei||0 per cent|
|13||New York||-1.2 per cent|
|14||Singapore||-2.3 per cent|
|15||Geneva||-4.6 per cent|
|16||London||-4.9 per cent|
|17||Nairobi||-6.2 per cent|