Rents rising in megacities

As the majority of nations eased pandemic-related restrictions, 2022 marked the return to the city. By the end of 2022 international arrivals stood at 75% to 80% of 2019 levels (according to Visa International Travel, VISIT). The return of international students and corporate demand has supported prime rental markets.

New York prime rents recovered to above pre-pandemic levels, assisted by a buoyant domestic market and growing demand for fully-serviced luxury apartments offering amenities, security and lifestyles services. As a result, median rents for properties in doorman buildings increased by 53% from lows of $3,270 in December 2020, to almost $5,000 at the end of 2022.

In Singapore, prime residential rents grew by 26.2% last year as the country opened up and saw strong demand from students, expats and high-net-worth individuals relocating to the city. Delayed completions of new prime stock further contributed to the significant rental rise seen in 2022.

Prioritising the quality of life

Lisbon and Dubai have both benefitted from an influx of lifestyle purchasers, attracted to these cities' climates, and quality of life on offer, supported by strong business environments, with prime rents up 25.4% and 22.9% respectively last year.

In spite of recent price appreciation, Lisbon remains competitively priced for a western Europe capital city, with prime rents 23% lower than Berlin, and 55% lower than London. However, as rents continue to rise, a rental cap has been enacted by the government in a bid to cool Lisbon's rental market.

Varied picture in Asia Pacific

In Sydney, prime rental markets have been boosted by demand from prospective homebuyers putting their plans on hold as rates have risen. This has contributed to the lack of stock, driving prime rental growth to 10.9% in 2022.

Still grappling with Covid-19 restrictions throughout 2022, the Asian cities of Hong Kong and Bangkok are yet to see the return of international tenants to pre-pandemic norms. Restricted source markets have also dampened growth levels in their prime rental markets. That’s expected to change this year, however as China opens up and remaining restrictions across the region are lifted.

_{Read the other articles within Savills Prime Residential Index: World Cities below}

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