Knight Frank – Prime global rental index, 4Q 2023

According to Knight Frank's Prime Global Rental Index, luxury rental values in the ten cities covered increased by an average of 5.2% in 2023. While this growth rate is lower than the previous quarter, it is still higher than pre-pandemic levels. On a quarterly basis, there was actually a decline of -0.6% in average rental growth, providing some relief for tenants. The luxury rental market has been grappling with a supply-demand imbalance for over three years, and while demand remains strong, affordability constraints are limiting tenants' ability to bid rents higher. New York and London have seen a slowdown in rental growth, while Sydney's rental market is still experiencing significant growth due to limited new construction and increased demand. Hong Kong's rental market saw limited growth influenced by seasonality and weak financial markets.