Commodity falls prompt global drop in prime property rents

The company said that global economic conditions, ranging from indifferent equity markets to the slump in commodity prices, had contributed to the index’s weaker performance in 2015.

Knight Frank’s Prime Global Rental Index tracks the change in luxury residential rents across 17 cities globally and more than 50 per cent of them recorded a decline in prime rents last year although, on a regional basis, North America bucked the trend with an average increase of 2.8 per cent.

However, the individual city that continued to be the global pacesetter was China’s Guangzhou, which topped the rankings for the second consecutive quarter and returned an annual rise of 5.3 per cent – well above the 3.3 per cent average increase in Tokyo and Toronto, which were in joint second place.

Taimur Khan, senior research analyst at Knight Frank, said, “The prime global rental markets is intrinsically linked to each city’s employment market and, in particular, the professional services sector.