Research article

What is happening to yields?

Average yields across our prime cities increased in 2019, standing at an average of 3.2% in December 2019 compared with 3.0% the year before


Los Angeles, USA

Los Angeles, USA

In 2019, growth in the rental market generally held up better than the purchaser market. As a result, average yields increased in the first half of 2019, after being on a downward trend since December 2014.

Average yields continued moving upwards in the second half of the year as rental growth continued to outpace price growth, standing at an average of 3.2% for the index as a whole in December 2019 compared with 3.0% a year before.

Los Angeles is the highest-yielding city in the index, at 5.5%. Yields here have been pushed upwards due to a shift from buying to renting, generally among younger age groups.

Cities in Asia-Pacific tend to be lower yielding, with the bottom 10 cities for average yields all located in this region. Chinese cities recorded the lowest yields, ranging between 1.5% and 1.7%. Bangkok and Kuala Lumpur are comparatively high yielding for the region, at 4.6% and 3.6% respectively. In Europe, Moscow records the highest yield at 5.0%, while London has the lowest at 2.9%.

Read the articles within Savills Prime Index: World Cities below.

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