Cape Town is among the few global cities which continues to enjoy positive rental growth in its luxury segment. This is according to Knight Frank’s Prime Global Rental Index, which tracks the change in luxury residential rents across 17 cities globally.
Cape Town, together with six other cities, bucked the trend where rental inflation fell for a third consecutive quarter, with rents falling on average by 0.5% in the year to March 2016. Some 11 cities have recorded flat or falling prime rents over the last 12 months.
Toronto leads the rankings with prime rents rising by 8.9%, while Nairobi brought up the rear with a drop of 7.9% in the 12 months to March.
Even London experienced -1% rental price growth in the year to March 2016, the lowest annual rate since May 2014. However, the total rental yield, which is a combination of capital growth and rental yield, was 3.7% in the year to March, outperforming benchmark hedge fund and stock market indices.
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