Top London tenancies are now cheaper

Kasmira Jefford
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PRIME residential rents across key cities worldwide rose 5.1 per cent last year, with only London experiencing a fall in rents, research out today claims.

The UK capital saw rents for its high-end homes fall 3.2 per cent in 2012 as the Eurozone’s ongoing turbulence and uncertainty in the financial sector kept activity muted.

Knight Frank’s prime global rental index, which compares the performance of high-end lettings markets across 16 key global cities, showed the best performing city on an annual basis was Nairobi, with rents rising 17.9 per cent in 2012.

Hong Kong has seen the strongest growth since the financial crisis in spring 2009 – up 42.2 per cent – as high purchase costs force would-be buyers to consider renting.

Moscow has seen the smallest rise, as rents rose 3.3 per cent.

“Although the emerging markets of Nairobi, Dubai and Beijing topped the rental rankings in 2012 we expect prime rents in the more established markets of London, New York and Zurich will see renewed growth in 2013 as supply constraints and the tight mortgage market prop up tenant demand,” said Kate Everett-Allen, Knight Frank international researcher.