Rental of luxury housing in major cities of the world becomes more expensive. In Europe, the largest price increase was recorded in Zurich, where rents rose by 7.9% from December 2011 to December 2012, according to Knight Frank. Zurich takes fourth place in the ranking of cities with the highest annual growth in prices for luxury real estate.
In general, the luxury housing prices in the key cities rose by 5.1% in 2012, 3.5% more than last year. According to experts, many potential buyers are forced to rent houses and apartments due to the tough conditions in the mortgage market, the limited supply of real estate and rising house prices.
In 2012, the price index for rental properties in key cities around the world exceeded the 20% level in 2009. According to Knight Frank's Prime Global Rental Index, over the past three years, the largest increase in rental rates for luxury housing was recorded in Hong Kong (+42.2%), and the lowest - in Moscow (+3.3%).
Ranking of cities with the largest annual increase in prices for luxury housing (December 2011 - December 2012):
1. Nairobi - 17.9%
2. Dubai - 14.3%
3. Beijing - 8.5%
4. Zurich - 7.9%
5. Shanghai - 6.1%
6. Tel Aviv - 5.7%
7. Guangzhou - 4.7%
8. New York City - 4.5%
9. Hong Kong - 3.7%
10. Moscow - 3.4%