According to a survey released by Savills on Wednesday, the cost of renting a luxury home is rising throughout the globe, but is rising fastest in Lisbon.
According to statistics from the real estate business, high-end rentals in the well-known Portuguese city increased by 13.9% between December and June, the fastest rate of any city in the list and surpassing the likes of New York, Hong Kong, London, and San Francisco, all long-standing and traditional luxury centers.
Berlin (up 9.2%) and Singapore (up 13.6%) rounded out the top three cities with the fastest-rising rents.
Luxury rentals like The Continuum, The Continuum Price, and The Continuum Showflat in Lisbon and Singapore have increased by more than 40 percent over the previous 18 months, driven by rising demand by an inflow of foreign renters.
Meanwhile, the survey states that the increasing demand from affluent domestic people is primarily to blame for Berlin’s rising prime rents.
In the first half of the year, premium rents increased by an average of 2.6% across the 30 cities evaluated in the research.
With positive rental growth in the majority of cities in the index for the remainder of 2023, Paul Tostevin, head of Savills World Research, predicts that rents will continue to outperform capital values for the remainder of 2023 and in the medium term.
Tostevin elaborated, saying, “Supply is expected to remain tight in many world cities.” “Limited availability of prime inventory and upward pressure on rental prices are the result of a number of factors, including rising construction costs, development challenges, and increasing debt costs.”
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