Cape Town has seen the biggest rise in annual rents for luxury homes in the world whilst London moved to the bottom of the list, Knight Frank’s latest index revealed.
Prime residential rents in the South African city have seen an increase by 5.9% annually, followed by Zurich at 5.1% and Guangzhou at 4%.
The overall number of cities worldwide in which prime rents have increased an on annual basis have increased from six in Q1 2017 to 12 during the same period this year, the report showed.
The index track luxury rents across 17 cities in the world and found that London’s prime rental market continues to bottom out with a annual drop in price by 4.9% to March 2017.
Knight Frank named the changes to taxation and a growing supply of property as the main reasons for the changing climate in London.
However, between January and May 2017 the number of new rental properties available on London’s property market dropped by 6% compared to one year earlier.
The report said:
“Relatively high stock levels [in London] have been a feature of the market since early 2015, as increased sales taxes and short-term uncertainty over pricing in the sales market prompted many would-be vendors to become landlords.”
Here’s an overview of the ranking:
