Luxury Rents Across 30 Global Cities Outpace Prime Sales Prices
Average prime rental values jumped by 5.9%, with some cities seeing jumps of more than 50%
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The growth of luxury rental prices outpaced the sales market in top global cities last year, according to a report Monday from Savills.
Average prime rental values jumped by 5.9% in 2022 across the 30 world cities analyzed in the report, the data showed. Limited inventory and increased demand pushed rents higher, while capital values saw an average of 3.2% rise during the year.
“Rental growth came as people continued to return to cities after the lifting of pandemic-related restrictions, and as rapidly rising interest rates in the latter half of 2022 meant that more people chose to rent,” Lucy Palk, an analyst at Savills World Research, said in a statement. “The rebound in international travel was a factor too, by the end of 2022 international arrivals had recovered to between 75% to 80% of 2019 levels.”
Meanwhile, average rents were up 10% or more in cities such as Singapore, New York, Dubai and Lisbon, Portugal, the report said.
For example, in New York, the median rent for properties in luxury, doorman buildings spiked 53% to almost $5,000 at the end of last year compared to $3,270 in December 2020, the figures showed.
And in Singapore, prime rents shot up by 26.2% annually as the country opened its borders and students, expats and high-net-worth individuals flooded the city. “Delayed completions of new prime stock further contributed to the significant rental rise seen in 2022,” the report said.
Climate, quality of life and strong business environments have been big draws for Lisbon and Dubai last year, where luxury rents were up 25.4% and 22.9%, respectively, according to the report.
The two strongest performing cities in the Asia Pacific region last year were Seoul, with 4.9% rental price growth, and Tokyo, 4.1%, the data showed.
On the flip side, Hong Kong had the lowest rental growth for luxury properties. The country is still subject to Covid-19-related restrictions, and has yet to see the full return of international tenants. In addition, rising interest rates have undermined consumer confidence.
“This suppressed transaction volumes causing pricing declines across all price brackets except the ultra-prime residences,” the report said. “Average prime prices fell by 8.5% in 2022.”
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Developers spent Dhs125 billion acquiring land in Dubai across the first seven months of 2026, according to Dubai Land Department data, as companies continued building their inventories of development sites ahead of a new project cycle.
The 7,981 land transactions accounted for approximately 8 per cent of the 99,900 total sales transactions recorded in the period, but a disproportionate 39 per cent of the Dhs321 billion in total real estate sales value — a figure that also includes residential units, villas and buildings. Market activity averaged around 1,140 land transactions a month, worth approximately Dhs17.8 billion.
Me’aisem 2 recorded the highest land-sale value of any area, with Dhs10.4 billion across 544 transactions, followed by Al Yalayis 5 with Dhs7.14 billion across 907 deals. Al Ruwayyah 1 ranked third by value despite just three major transactions, worth a combined Dhs6.3 billion. Palm Jebel Ali, Umm Suqeim I and Al Yalayis 1 rounded out the next tier, while Palm Jumeirah recorded Dhs2.4 billion across 44 deals.
The concentration of value in a small number of land transactions — as seen in Al Ruwayyah 1’s three deals worth Dhs6.3 billion — reflects the scale of individual site acquisitions in Dubai’s primary land market, distinct from the smaller residential resale transactions that make up the bulk of deal volume.
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