Prime rents across our 30 global markets have increased by 2% over the past six months, bringing annual growth to 3.8% for the year to June 2025. This has been driven by increases in rents across 23 of the 30 global markets in the same period, reflecting the continued global demand for top-tier rentals in key destinations.

Tokyo on top

Tokyo recorded the strongest growth of the cities we monitor, benefitting from both domestic and international rental demand. The city’s appeal as both a cultural and business hub, combined with scarce supply in the prime segment, has placed upward pressure on rents. As a result, rents increased by 13.5% over the past year and 7.8% over the past six months. As supply looks to remain limited, the market is poised to see continued rental growth in the range of 6% to 7.9% over the next six months.

International appeal

Cape Town had strong rental growth of 6.5% in H1 2025. A growing number of domestic and international renters are looking towards Cape Town as a scenic and affordable location which, alongside a short supply of prime rental properties, has pushed prices up. Last year’s election contributed to stability in the market, and with this sustained demand pushing rent forecasts to between 6% to 7.9% growth over the next six months.

Dubai saw rental prices increase by 2.9% over the past six months and 13.3% in the year to June 2025, representing a cooling of recent growth. Dubai continues to draw the wealthy to its shores, while renewal rates on leases remain high.

European edge

In Europe, rental growth remains slightly more muted than in other regions of the world, as the region sees an overarching trend towards price stabilisation. The strongest rental price increases over the past six months have been seen in Berlin, where rents have grown by 6.3%. Strong demand continues to support rent increases, and for a market where there are more tenants than homeowners, this can have an outsized impact on rents.

Amsterdam has also seen strong rental growth. The market has begun to cater more to the wealthy international renter class, who are willing to pay for premium locations and quality living spaces. This group is slightly more insulated from economic uncertainty that has damped domestic demand for this type of product. While there is no explicit evidence yet, changes to tax incentives in 2024 may negatively impact demand from expats in the future. Despite this, rents are expected to grow from between 2% to 3.9% over the next six months.

High supply, slight declines

Almost all the markets that saw declines in the first half of 2025 can be found in mainland China, with six-month growth ranging from -0.2% in Beijing to -1.8% in Guangzhou. Falls come amidst weak demand and high supply of prime product. Looking to the near future, conditions are expected to remain largely the same, with perhaps some slight positivity in the form of increasing transactions and government policy changes, but overall, rents in these markets are expected to shrink by no more than -1.9% over the next six months.

Outlook

Across our 30 markets there is an average expected rental growth of 1% for the remainder of 2025, reflecting a general sense of cautious positivity regarding rental markets and demand. Continued macroeconomic and geopolitical uncertainty could limit rental growth, but the enduring appeal of prime residential property across the world will remain.