Dubai named world's top performing rental market

Knight Frank says rents in the emirate up 18.3% in past year to top global real estate index
Dubai named world's top performing rental market
Dubai real estate, Dubai Marina, Dubai property
By Andy Sambidge
Sun 07 Jul 2013 08:11 AM

Rental values in Dubai rose most in the past year than anywhere else in the world, according to new figures released by Knight Frank on Sunday.

The Knight Frank Prime Global Rental Index showed rents in the emirate increased by 18.3 percent in the year to March.

By contrast, the leading financial centres of Hong Kong, New York and London were some of the weakest performers, recording falls of 2.3 percent, 2.6 percent and 3.1 percent respectively.

Rental values in Dubai rose 10.1 percent in the past six months and by 3.5 percent in the first quarter of 2013, the index also showed.

On an annual basis, Nairobi (13.9 percent) and Beijing (12.3 percent) were the second and third best performing rental markets in the world, Knight Frank said.

Globally, the Knight Frank Prime Global Rental Index rose by 0.2 percent in the first quarter of 2013 and by 3.8% in the year to March.

The index has risen for 15 consecutive quarters and now stands 20.3 percent above its low in the second quarter of 2009.

On a regional basis, the Middle East saw the strongest rise in prime rents (up 13.1 percent) and North America the weakest (down 0.7 percent).

"Prime rents are rising strongly in many emerging markets, but this growth is being overshadowed by weakening rents in some of the world’s more established financial centres such as Hong Kong, New York and London," Knight Frank said in its report.

"Global mobility is on the rise as companies look to plug their skills gap but the latest figures suggest it is increasingly a west to east shift with many multinationals relocating a growing portion of their key talent to growth markets in Africa, China and the Middle East," it added.

For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.