Prime Global Rental Index – Q1 2025
The global luxury rental market has seen growth stabilise after a period of exceptional expansion. Rental growth ticked higher in Q1 2025 after a sharp slowdown in 2024, with annual growth averaging 3% over our 16-city basket of properties.
Key findings:
- Prime global rental growth stabilised at 3% year-on-year in Q1 2025, signalling a more mature phase following the post-pandemic surge.
- Los Angeles, Hong Kong and Tokyo led annual growth among global cities, with increases of 7.0%, 6.5%, and 6.1% respectively.
- Real (inflation-adjusted) rental growth remains subdued, at just 1.1% versus a nominal rise of 3.0%, highlighting the continued impact of inflation.
- Performance diverged sharply across cities, with Toronto down 3.3% annually while Auckland posted a sharp 4.2% quarterly rebound despite flat yearly growth.
Liam Bailey, global head of research at Knight Frank, commented: “Our latest data points to a more mature phase of the rental cycle in global prime markets. While demand remains resilient in core hubs, returns are moderating, and investors must increasingly account for inflation, currency risk, and local regulatory factors when assessing performance.”
Discover more by delving into our latest report below.
