LUXURY RENTS AROUND THE WORLD ROSE FASTER THAN SALES PRICES 2023
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Luxury residential rents remained strong globally in 2023, outperforming capital values in 28 of the 30 cities tracked in the Savills World Cities Index, according to a report from the British real estate company on Wednesday. On average, luxury rents increased by 5.1% last year, compared to the average home price growth of 2.2%. “In the face of economic uncertainty, the prime residential rental market proved resilient in 2023,” said Kelcie Sellers, associate at Savills World Research.
“Continuing a trend from the past year, prime rental value growth outpaced capital values, largely driven by a lack of stock in global prime markets and increased levels of demand from individuals and families who would look to purchase a property, but are holding off until the economic and interest rate situations stabilise.”
Lisbon was by far the leader in rental growth, with luxury rents increasing by an average of 39% over the year and by 22% in just the second half of 2023, according to the report.
“Lisbon has seen an influx of people moving to the city, attracted to its climate, the quality of life on offer and strong business environment. But some have been more reluctant to enter the purchase market in Lisbon due to rising house prices and increasing interest rates,” Sellers said. “While the supply of houses in the rental market has not kept pace with demand, leading to a rise in rental prices throughout Portugal, it remains comparatively priced compared to other rental markets in Europe and will likely continue to attract new renters and investors over the coming year.”
Singapore led the Asia-Pacific region, with its rental growth at 12.3%, though that was down from 32.3% in 2022. Hong Kong also saw luxury rents increase, jumping by 5.9%, as high deposit requirements, increased interest rates and an influx of buyers from Mainland China drove would-be buyers to the rental market, according to Savills.
As for the year ahead, a slight increase in luxury rents is expected across the 30 global cities, though the price growth may be less than usual.
“Looking at the year ahead, prime rental prices are forecast to record a slight increase for the 30 cities covered in the World Cities index, as would-be prime buyers continue to turn to rental markets, but this growth will likely remain below the historic average,” Sellers said. Savills predicts that Amsterdam will lead this year’s rental growth index, with a forecasted increase of 6% to 7.9%, as the city has seen a spike in demand in tandem with limited supply and increased regulations on the private rented sector.
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Launches plots for sale in ongoing Expo Valley residential development.
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Expo City Dubai, the master developer, has awarded four new contracts—three to UAE-based companies—and introduced plots of land for sale as part of the ongoing development of the Expo Valley residential project. Expo Valley, which is set to welcome its first residents in early 2026, will feature 532 villas, townhouses, and semi-detached properties.
These homes are designed to meet the highest sustainability standards, promoting environmentally friendly living and enhancing health and wellbeing. Additionally, Expo City has unveiled Expo Valley Plots, offering prospective buyers land parcels ranging from 7,500 to 12,500 square feet, with the option to combine areas to suit their needs.
Situated at the heart of Dubai’s growth corridor, Expo City Dubai boasts excellent connectivity via metro and major highways. With the expanding Dubai Exhibition Centre and the new Al Maktoum International Airport nearby, residents and the business community will enjoy seamless access to the rest of the city and beyond.
Ahmed Al Khatib, Chief Development and Delivery Officer at Expo City Dubai, said: “We continue to work closely with leading local and international companies, renowned for their expertise, as we build a community that epitomizes top quality, exceptional urban design. And as we invest in our city’s growth, we are delighted to offer plots of land for sale and the opportunity for designers and developers to be part of our successful, vibrant environment.”
Senan Abdullah Mohamed Juma Al Naboodah, Managing Director of Al Naboodah Construction Group, said: “This association is a continuation from our Expo 2020 Dubai collaboration, where we played a major role in delivering various projects leading to a very successful event. We value the developer’s commitment to ‘Better Together’, which emphasizes the power of collaboration, teamwork and synergy. Moving forward, we look to continue our association in developing this beautiful, one-of-a-kind residential community.”
Expo Valley residents will enjoy access to a nature reserve, lake and wadi, cycling tracks, walking trails, stables and bridleways, alongside play areas, recreational facilities – including three community clubhouses with gyms – charming cafés and farm-to-table dining, while Expo City’s attractions, family-friendly activities and retail and dining experiences are within easy reach.
Parsons oversaw the enabling works and overall supervision of the earthworks and Al Naboodah Contracting Company was responsible for decommissioning below-ground services and undertaking the landform grading works across the development. AECOM Middle East Limited is overseeing the administration and site supervision of Expo Valley’s infrastructure works and Al Nasr Contracting Company is responsible for the construction of utility networks, power systems, road works and associated landscaping works.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
