Luxury Rents Around the World Rose Faster Than Sales Prices 2023
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Luxury residential rents remained strong globally in 2023, outperforming capital values in 28 of the 30 cities tracked in the Savills World Cities Index, according to a report from the British real estate company on Wednesday. On average, luxury rents increased by 5.1% last year, compared to the average home price growth of 2.2%. “In the face of economic uncertainty, the prime residential rental market proved resilient in 2023,” said Kelcie Sellers, associate at Savills World Research.
“Continuing a trend from the past year, prime rental value growth outpaced capital values, largely driven by a lack of stock in global prime markets and increased levels of demand from individuals and families who would look to purchase a property, but are holding off until the economic and interest rate situations stabilise.”
Lisbon was by far the leader in rental growth, with luxury rents increasing by an average of 39% over the year and by 22% in just the second half of 2023, according to the report.
“Lisbon has seen an influx of people moving to the city, attracted to its climate, the quality of life on offer and strong business environment. But some have been more reluctant to enter the purchase market in Lisbon due to rising house prices and increasing interest rates,” Sellers said. “While the supply of houses in the rental market has not kept pace with demand, leading to a rise in rental prices throughout Portugal, it remains comparatively priced compared to other rental markets in Europe and will likely continue to attract new renters and investors over the coming year.”
Singapore led the Asia-Pacific region, with its rental growth at 12.3%, though that was down from 32.3% in 2022. Hong Kong also saw luxury rents increase, jumping by 5.9%, as high deposit requirements, increased interest rates and an influx of buyers from Mainland China drove would-be buyers to the rental market, according to Savills.
As for the year ahead, a slight increase in luxury rents is expected across the 30 global cities, though the price growth may be less than usual.
“Looking at the year ahead, prime rental prices are forecast to record a slight increase for the 30 cities covered in the World Cities index, as would-be prime buyers continue to turn to rental markets, but this growth will likely remain below the historic average,” Sellers said. Savills predicts that Amsterdam will lead this year’s rental growth index, with a forecasted increase of 6% to 7.9%, as the city has seen a spike in demand in tandem with limited supply and increased regulations on the private rented sector.
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This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
The house channels mid-century modern style with numerous quirks, including a glass window backsplash in the kitchen and a floating office
2 min
An architecturally impressive abode in Palm Springs, California, that combines mid-century style with Old Hollywood glamour has hit the market for $7.69 million.
Despite appearances, the desert getaway was actually built in 2012, by Sean Lockyer of Studio AR&D. This marks the first time the home has been on the market since its creation.
“The goal with this project was to blend modern elegance and iconic mid-century architectural techniques,” Lockyer said.
By implementing “classic mid-century nods like floor-to-ceiling expanses of glass, aggregate block construction and a cantilevered steel roofline, the residence is unable to be dated and could easily be misjudged in age,” he added.
The heart of the 7,000-square-foot home is its glass-encased great room, complete with a recessed living area and a double-sided fireplace that extends through the glass walls and to the adjacent covered outdoor living space, according to the listing with Todd Monaghan and Keith Markovitz of TTK Represents of Compass, who brought the home to the market earlier this month.
The owners, who couldn’t be reached for comment, paid $700,000 for the underlying property in 2009, records with PropertyShark show.
The single-storey house also boasts an office that appears to hover over the ground, a media room, a wine room and an open kitchen that swaps the traditional backsplash with glass.
There are four bedrooms, including a primary suite that occupies an entire wing of the house, and the pool sits in the centre of the home, visible from nearly all angels.
The interior design, meanwhile, takes inspiration from Hollywood Regency decor.
The property is “among the best homes I have experienced in Palm Springs,” said Markovitz.
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
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