According to the latest study by Savills, ‘Prime Residential World Cities index’, luxury property rental prices increased by 2.2% in the first half of the year. According to the consultancy, 25 of the 30 markets analysed around the world recorded an increase in rental prices.

“The increase in prime rental prices that Lisbon has seen continuously in recent years is the result of growing demand, mainly from foreigners, and also the scarcity of high-end properties available for rent on the market. Lisbon is increasingly on the international radar due to the unparalleled quality of life it offers to those who live there, so it seems to us that the value of prime rentals will continue to rise”, says Alexandra Portugal Gomes, Head of Research at Savills.

Kelcie Sellers, associate director at Savills World Research comments that “Dubai and Lisbon have been perennial leaders in terms of growth in their prime rental markets due to the excess demand for high-quality properties to rent”. However, she highlights Bangkok, where demand for luxury rental properties has increased due to the higher interest rate environment and the return of tourism and expats after the pandemic.

In many EMEA (Europe, Middle East, and Africa) markets, demand continues to outstrip the supply of prime properties to rent, which is helping to increase prime prices across the region. In none of the EMEA markets analysed did rental prices fall from December 2023 to June 2024.

"Athens, Barcelona, ​​Amsterdam, Berlin and Cape Town saw prime rental prices rise by more than 3% during the first half of 2024. In Athens, rental prices overall increased by 4.6% during this period", the consultancy reveals.

"In the 30 global cities analysed, prime yields increased by 10 basis points in 2023, to 3.1%, as global rental markets recorded stronger growth than sales markets. The average prime yield across the 30 markets is currently 3.2%, up from 3.1% in December. Los Angeles, New York and Dubai continue to be the cities with the highest yields, above 5%", it also reads.