“Investors must understand that high residential rents can’t be justified on the basis of high capital values alone and that a given city’s mainstream market can behave quite differently from its prime market.”Yolande Barnes, Head of World Research at Savills said.
- San Francisco world’s most expensive city for mainstream residential rents, New York for prime
- Chinese cities enter top 10 for prime, but don’t rank for mainstream
- London 4th for mainstream rents, below San Francisco, New York and LA, but 2nd for prime
- Tokyo world no 2 most expensive for prime, not ranked for mainstream rents
- Hong Kong tipped to overtake London to become 3rd most expensive for prime
A booming tech sector has made San Francisco the most expensive world city for the average renter, at a cost of £460 per week, ahead of New York and Los Angeles, according to latest analysis from international real estate adviser, Savills.
London ranks fourth most expensive for mainstream rents, at an average of £350 per week, some £90 per week cheaper than San Francisco.
Hong Kong, which alongside London is known for having among the world’s highest capital values, ranks 9th for mainstream rents, at an average of £320 per week, though with rental growth of 13.2 per cent last year, Hong Kong could join the top five this year.
Paris continues to represent relative value on the world stage, with average rents a third cheaper than San Francisco. In the context of Europe, it is 14 per cent cheaper than London and 12 per cent cheaper than Dublin.
A top ten of world cities ranked by prime rental values looks very different. New York ranks most expensive, with an average £2,300 per week, around five times the mainstream average, and almost £400 per week more expensive than second place Tokyo. Like Tokyo, China doesn’t feature in the mainstream list, but two cities – Beijing and Shenzhen – appear in the prime listing. Amsterdam also makes the prime list, having seen prime rents rise by almost a fifth over the past year.
For more information, click 27032018 – Savills World Cities – Residential rents
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