Prime Global Rental Growth Rebounds
Knight Frank’s Prime Global Rental Index Q2 2025 shows luxury rentals across 16 world cities grew by 3.5% year-on-year, signaling a modest recovery after last year’s slowdown. For Indian investors, cities like London, New York, Singapore, and Sydney continue to be prime targets due to their strong international demand and limited new supply.
Indian Affinity for Global Gateway Cities
Shishir Baijal, Chairman & MD, Knight Frank India, noted that Indian investors have consistently favored New York, London, and Singapore, calling them “stable long-term investment destinations.” Despite high global interest rates, constrained supply and resilient demand are keeping rental markets attractive for Indian buyers looking to diversify internationally.
Global Rental Market Leaders
- Hong Kong led the index with 8.6% annual rental growth, followed closely by Tokyo (8.3%).
- New York (6.9%) registered strong quarterly gains of 6.6%, highlighting its continued rebound.
- European hubs like Berlin (4.9%) and Frankfurt (4.7%) showed steady momentum.
- London (1.5%) and Singapore (1.5%) stayed resilient due to tight supply and steady overseas demand.
Long-Term Growth Trends
Over the last five years, Miami (+61%) and New York (+47%) have dominated prime rental growth, driven by post-pandemic migration and luxury demand. Sydney, Singapore, and London (+43% each) also posted strong increases, cementing their reputation as safe bets for global investors.
Outlook: Demand Outpaces Supply
While elevated interest rates and inflation continue to weigh on affordability, immigration-led demand and low construction pipelines are expected to keep rentals trending upwards. Knight Frank forecasts mid-single-digit growth for New York and Miami, while Hong Kong and Tokyo may moderate under regulatory pressure.
