Recent data from the consultancy Savills show that in June 2022, the price of prime rentals in Lisbon rose 7.6% compared to December 2021. The capital is also placed fourth in the ranking – which includes 30 cities – of the cities where renting a luxury home has become more expensive, behind London (UK), Singapore and New York (USA).
This is one of the conclusions to be drawn from the Savills Prime Residential World Cities Rental Index report. According to the same report, the growth of rents in the prime residential market surpassed the growth of the sale value in the first half of the year, having increased, on average, 3.1%. This is a higher value than the increase in the sale value (2.4%).
“Megacities are thriving again as tenants return to urban life after periods of lockdown. The shortage of supply and demand for a city lifestyle, driven by the reopening of international borders at the end of 2021, has continued to fuel this growth trajectory. The return of corporate travel, the fact that buyers try out products and services before purchasing them, and a prioritisation of the home following the adoption of flexible working models, are factors that are driving the growth of prime rental markets in the main cities of the world”, says Lucy Palk, analyst, Savills World Research, cited in an article published on the consultant's website.
Savills reports that New York, Singapore, London and Los Angeles (USA) led the growth in rents in the prime market, recording increases of more than 5% and benefiting, in particular, from the return of international travel.
“In Lisbon, Miami and Dubai, the value of rents grew rapidly, having exceeded 5%, in part due to new lifestyle trends practiced, also observed in other markets”, notes Savills.
Also quoted in the article, Paul Tostevin, Head of Savills World Research, stresses that “the reduced stock will continue to drive growth in prime rental values in the short term, especially for the type of housing that tenants are looking for: quality units, located in central areas”.