After years of rapid growth, global prime residential rents showed clear signs of slowing in 2024, as high prices and supply bottlenecks reshaped rental dynamics across key cities.
According to Knight Frank’s Prime Global Rental Index – Q4 2024, rents increased by just 2.2% year-over-year across 16 leading global cities—marking the slowest annual growth rate since mid-2021.
Tokyo, Zurich, and Melbourne Lead the Market
Tokyo led the index with 6% annual rental growth, driven by strong demand and limited new supply. Zurich and Melbourne also showed robust performance, ranking second and third respectively.
Since the end of 2020, prime city rents have jumped by 28%, with London and New York posting gains of over 50%, as pandemic-era repricing reshaped urban housing markets.
Rent Declines in Toronto, Auckland, and Singapore
Only three markets saw rental declines in 2024:
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Toronto
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Auckland
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Singapore
Despite the recent slowdown, Singapore (+40.1%) and Toronto (+28.9%) have seen significant cumulative rental growth since early 2021. Auckland, by contrast, saw just a 9.6% rise over the same period.
Outlook for 2025
With high rental prices and tighter affordability in many cities, further moderation may be expected unless new supply can meet demand. However, sustained demand for high-quality urban living could maintain upward pressure in undersupplied markets.
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