Global Luxury Rentals Rebound: Indian Investors Zero In on London & New York

  • 25th Aug 2025
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Global Luxury Rentals Rebound: Indian Investors Zero In on London & New York

Prime global rental growth returned to positive momentum in Q2 2025, supported by supply shortages, return-to-office shifts, and steady demand across international hubs. For Indian investors, cities like London, New York, and Singapore remain the anchor markets for diversification. This trend aligns with broader patterns we've observed in luxury property markets showing steady growth globally.

Global Prime Rental Performance – Q2 2025

City Annual Growth (%) Quarterly Growth (%) Notes / Drivers
Hong Kong 8.6 n/a Led the world; urban resilience
Tokyo 8.3 n/a Demand from domestic & regional buyers
New York 6.9 6.6 Strongest quarterly jump; Manhattan rebound
Berlin 4.9 n/a Steady European growth
Frankfurt 4.7 n/a Continued business/investor appeal
London 1.5 n/a Limited supply, safe-haven demand
Singapore 1.5 n/a Financial hub status, tight stock
Global Avg. 3.5 Across 16 cities tracked by Knight Frank

New York's remarkable performance reflects the ongoing reality of New York's luxury property market dynamics, while London continues to demonstrate resilience as detailed in our analysis of the essence of luxury real estate in London.

5-Year Cumulative Prime Rental Growth (2020–2025)

City Growth (%) Key Drivers
Miami 61 Domestic migration, lifestyle-led luxury demand
New York 47 Post-pandemic Manhattan revival
London 43 Global financial centre resilience
Singapore 43 Expats & finance-driven demand
Melbourne 40 Asia-Pacific hub
Los Angeles 38 Hollywood & lifestyle magnetism
Berlin 31 Cultural/business hub, steady EU demand

Miami's exceptional 61% growth over five years reinforces recent trends, as highlighted in our coverage of real estate sales spiking up by 55% in Miami. Meanwhile, the strong performance of Singapore aligns with the city's status as a wealth hub, home to many of the top 15 richest people in Singapore.

Knight Frank's Forward Outlook (2025)

Region/City Forecast Trend Notes
New York Mid-single-digit growth Tight supply + continued office revival
Miami Mid-single-digit growth Lifestyle migration continues
Hong Kong Likely moderation Regulatory challenges
Tokyo Likely moderation Policy pressures
London Low- to mid-single-digit growth Constrained supply, financial hub demand
Berlin Low- to mid-single-digit growth Limited new pipeline

For investors exploring luxury real estate in the 5 boroughs of New York City, this outlook suggests continued opportunities across Manhattan's diverse neighborhoods. Similarly, those interested in New York's luxury market can explore insights about property developers in Manhattan riding on the amazing demand for luxury homes.

Indian Investor Takeaways

  • Preferred Gateways: London, New York, Singapore continue to attract Indian capital due to their established luxury markets and transparent regulatory frameworks.
  • Why They Appeal: Limited supply + consistent demand + safe-haven status make these cities ideal for portfolio diversification beyond domestic markets.
  • Diversification Value: Provides stability against Indian market cycles while offering exposure to globally appreciating assets, as discussed in our guide on buying a luxury home and 5 things you need to know.
  • Investment Strategy: Anchor wealth in mature hubs while balancing domestic growth bets, particularly as luxury real estate comes of age in India and creates new opportunities for comparison with international markets.

For Indian investors considering international luxury real estate, understanding these global trends becomes crucial when evaluating opportunities. Whether examining world's most expensive homes or exploring emerging markets, the data points to sustained growth in established luxury rental markets. These insights complement broader investment strategies outlined by the best luxury real estate companies worldwide.


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Author

Pradeep Dhuri

Pradeep Dhuri is a graphic designer, health enthusiast, video creator, and editor with a continuous desire to learn and develop. He is driven by an ambition to produce better things every day and to contribute to the world's betterment. He also utilises his talent for writing to explore fascinating ... read more


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