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