According to the Prime Global Index, a property rental price index for luxury properties published quarterly by Knight Frank, rents in the 10 monitored cities increased by 5.2% at the end of Q4 2023, compared to the end of December 2022. This value represents a 50% decrease in growth dynamics compared to the same period a year earlier when it stood at 10.2%.
Key findings include:
- The current price increase rate is the lowest since Q3 2021. Nonetheless, it is still higher than the long-term average pre-pandemic rate.
- On a quarterly basis, the mean rent increase dropped by 0.6%. This represents the first quarterly decline since Q1 2021.
- Sydney ranks first in luxury property rental price growth. Prices increased by 18.1% annually and 4% quarterly.
- Premium property rents in New York have been falling every month in the last quarter of 2023. The city ranks at the bottom, registering a price drop of 0.3% annually and -2.5% quarterly.
“Over the past three years, luxury property rental prices broke records due to high demand and a lack of new supply on the market. The stabilization period on the labor market impacted the demand. Prices, which grew four times faster than the long-term pre-pandemic average, have now slowed down and are only twice as fast as during that period. We estimate that prices will stabilize in 2024,” commented Liam Bailey, Global Head of Research at Knight Frank.
* The index monitors rental prices in 10 cities: New York, London, Singapore, Toronto, Sydney, Geneva, Monaco, Tokyo, Auckland, Hong Kong.
