Report: Nairobi sees world’s largest high-end residential rent increases

Reflecting Africa’s growing importance in the global business arena, Nairobi saw the greatest rise in prime residential rents during 2012, according to the latest edition of Knight Frank’s Prime Global Rental Index, which compares the performance of high-end lettings markets across key global cities.

Reflecting Africa&#x;s growing importance in the global business arena, Nairobi saw the greatest rise in prime residential rents during 2012, according to the latest edition of Knight Frank&#x;s Prime Global Rental Index, which compares the performance of high-end lettings markets across key global cities.The index rose by 1.6% in the final quarter of 2012 and by 5.1% over the course of the year, as a tight mortgage market, with limited supply in established markets and rising property prices in emerging ones, forced many would-be purchasers into rented accommodation. It is now 20% above its post-financial crisis low in the second quarter of 2009.Nairobi saw the largest increase in prime rents, which rose by 17.9%, and Dubai the second-largest, at 14.3%. Beijing, at 8.5%, was next.In Europe, the best performer was Zurich, with growth of 7.9%.Since the second quarter of 2009, Hong Kong has seen the highest increase in prime rents (up 42.2%) and Moscow the lowest (up 3.3%).Of the cities tracked, only London recorded a fall in prime rents, which were down 3.2% in the 12 months to December 2012.Knight Frank&#x;s Kate Everett-Allen says, &#x;The challenging business environment is affecting housing allowances for expatriates around the world, not just in Europe and North America. Consequently, corporate tenants are opting for smaller units, given budget constraints.&#x;Although the emerging markets of Nairobi, Dubai and Beijing topped the rental rankings in 2012, we expect prime rents in the more established markets of London, New York and Zurich will see renewed growth in 2013, as supply constraints and the tight mortgage market prop up tenant demand.&#x;In the Summer 2013 issue of Re:locate magazine (out June), we&#x;ll be looking at Africa as a relocation destination.