Average prime residential gross yields held steady at 3.0% in 2021 despite significant prime rental market growth during the last six months
Average prime rental value growth for the Index caught up with prime price growth in 2021 as renters flocked back to cities in the latter half of 2021.
The easing of pandemic restrictions and opening of international borders drove the growth in global prime city rental markets as professionals, students, and international tenants were once again able to cross borders.
Tenants’ desire for New York’s city life was revitalised. Average yields returned to pre-pandemic levels of 4.5%, recording one of the highest number of leases signed in six months for June to December, depleting rental stocks.
In the Middle East, Dubai’s prime residential rental markets have performed incredibly well in 2021. Although average yields have not reached highs of 2012, a steady increase in professional expatriates relocating to the city has been driving prime rental market demand.
Conversely, Moscow has struggled to return to pre-pandemic yields. The Russian’s capital prime rental market is driven by corporate and international tenants and these remained largely absent in 2021.
Global city: New York
Read the articles within Savills Prime Residential Index: World Cities below.