Prime Global Rental Index Q2 2025 Report
Knight Frank’s Prime Global Rental Index tracks the performance of luxury residential rents across key world cities each quarter using data compiled by our global research network.
- Global rental growth stabilises: The global luxury rental market has seen its recovery firm after last year’s slowdown. Rental growth ticked up again in Q2 2025, with annual growth averaging 3.5% across our 16-city index, up from 3.0% in Q1.
- Strongest and weakest markets: Hong Kong and Tokyo lead luxury-rental growth, with annual gains of 8.6% and 8.3%. Auckland (-2.1%) and Toronto (-3.5%) lag.
- Five-year growth leaders: Over the past five years, Miami has led prime-rental growth by a wide margin, surging 61%, driven by domestic migration and luxury demand. It is followed by New York, which saw a 47% rise. Asia-Pacific powerhouses Sydney and Singapore each posted robust gains of 43%, as did London.
- Outlook: Elevated interest rates and persistent inflation are tempering prime rental growth in major cities, as affordability constraints curb tenants’ ability to bid up rents. However, strong immigration underpins growth, and demand – set against limited new supply – will push rents towards long-term trend rates.
Liam Bailey, global head of research at Knight Frank, commented: “Prime global rental markets are beginning to see a move back to trend rates of growth, while affordability is very tight in most markets, demand continues to outpace supply and our view is growth will tick higher from here through 2025.”
Discover more by delving into our latest report below.
