London, New York, and Singapore Lead Global Luxury Rental Recovery as Indian Investors Eye Prime Markets : What You Need To Know

Published on August 26, 2025

Luxury rental markets across leading global cities, including London, New York, Singapore, and Hong Kong, are showing signs of recovery, with Indian investors continuing to favour these gateway markets for long-term investments. According to the latest Prime Global Rental Index by Knight Frank, the global luxury rental market posted an average growth of 3.5% in Q2 2025, signaling a modest rebound from last year’s slowdown. Notably, cities such as New York, London, and Singapore are still attracting significant interest from Indian investors, who view them as stable, prime real estate markets with sustained rental growth.

Global Luxury Rental Market Sees Modest Recovery in Q2 2025

The luxury rental market across sixteen global cities experienced a steady recovery, with a year-on-year growth of 3.5%. This rebound comes after a slower period in 2024. Hong Kong led the growth with an impressive 8.6% year-on-year increase in Q2 2025, followed by Tokyo at 8.3%. New York saw a solid 6.9% increase, with a 6.6% quarterly rise, further proving its status as a key destination for luxury rental demand. European cities like Berlin (4.9%) and Frankfurt (4.7%) also maintained steady growth, reflecting a growing interest in prime rental properties.

London and Singapore, while recording more modest increases of 1.5%, continue to show resilience due to strong international demand and limited new supply. These cities are considered stable rental markets, attracting investors looking for security in a volatile global economy.

Miami’s Leading Growth and the Appeal of U.S. Markets

Miami’s prime rental market has seen the most significant growth over the past five years, surging by sixty-one percent, driven by both domestic migration and an increasing demand for luxury properties. New York followed closely with a forty-seven percent increase, largely fueled by a post-pandemic rebound in Manhattan’s rental demand. Asian-Pacific cities like Sydney and Singapore have posted robust gains of forty-three percent, matching London’s growth driven by international interest.

This upward trajectory in major cities such as Melbourne (forty percent) and Los Angeles (thirty-eight percent) reflects the continued global demand for luxury real estate, making them highly attractive for investors looking to diversify their portfolios. European cities, like Berlin, recorded a more moderate thirty-one percent increase, but the trend is still positive for prime real estate markets in the region.

Indian Investors’ Continued Interest in Global Gateway Cities

Indian investors have long favoured global gateway cities, and according to recent reports, they are increasingly turning their attention to prime real estate markets in London, New York, and Singapore. These cities are highly attractive due to their steady rental growth, constrained supply, and the high demand from international tenants. This trend aligns with the growing interest in global luxury real estate, with Indian investors seeking to diversify their portfolios and capitalise on the long-term stability of these markets.

Even in a high-interest-rate environment, the ongoing supply constraints and consistent demand for luxury properties are expected to continue supporting rental growth, making international prime property an appealing investment strategy. As global tourism continues to recover, these key markets are likely to see continued growth in rental demand, providing stable returns for investors.

Rising Rental Demand Driven by Immigration and Limited Supply

In many global cities, the return-to-office trend, coupled with sustained immigration, has provided a boost to rental demand. With limited new supply coming into the market, especially in high-demand cities like New York, London, and Singapore, rents are expected to continue to increase, albeit at a more moderate pace. This is particularly true in gateway cities, where international demand and constrained supply create a perfect environment for rental growth.

For tourists and expatriates seeking luxury accommodations, these cities will remain top destinations, offering a range of high-end rental options. As the global tourism industry continues to recover, travelers will benefit from an expanding rental market with more available options for short- and long-term stays in prime locations.

Luxury Rentals Remain Strong Investment Options

The global luxury rental market is witnessing a recovery, driven by strong demand in key cities such as London, New York, Singapore, and Hong Kong. With rental growth rebounding and Indian investors continuing to favor gateway markets, the future of prime global real estate looks promising. These cities are expected to remain attractive investment destinations, offering long-term stability and significant returns in a post-pandemic world.

As tourism continues to recover globally, the luxury rental market is poised to thrive, with growing opportunities for both investors and tourists seeking high-quality accommodations in the world’s most iconic cities.