Average rents in Dubai remained unchanged in the third quarter of 2014 but the emirate still registered the biggest annual growth, according to a new Knight Frank report.
Its Prime Global Rental Index revealed that rental growth in Dubai was more than 12 percent compared to Q3 2013. It topped a list of 16 real estate markets in the world although the rate of growth has slowed considerably during the year.
Rents rose by just two percent in the second quarter of the year and were flat in the three months to the end of September, the Knight Frank index showed.
The emirate’s 12.4 percent annual rental growth put it ahead of Tokyo, Nairobi, New York and Cape Town for the biggest increases in the past 12 months.
Globally, the index increased by 2.1 percent in the year to September, its rate of annual growth slowing considerably from 5.8 percent a year earlier.
Knight Frank said that of the 16 cities tracked by the index, it expects New York and London to record the strongest increase in prime rents in 2015.
The index’s overall slowdown becomes apparent when the results are compared year-on-year. In the year to September 2013 nearly 90 percent of the cities tracked saw prime rents increase on an annual basis but this figure has now shrunk to 66 percent.
Concerns over a renewed downturn in the Eurozone, a potential interest rate hike in the US and the UK as well as tension in Ukraine and the Middle East are weighing on economic confidence, Knight Frank said.
Of the cities tracked, New York continues to command the highest luxury rents in real terms with a typical two bedroom apartment in Manhattan available at around $8,000-$8,500 per month.
London and Moscow sit in second and third place with prime rents around $6,500-$8,000 and between $6,000 and $7,000 per month respectively. Source: Arabian Business