Renting luxury space in Miami, Dubai and Singapore has gotten a lot more expensive in the past three years.
In 2019, it was possible to rent a 4,430-square-foot prime apartment in Miami for $2,000 a week. By the end of 2022, the same amount of money would get you 2,200 square feet, or about 50% less space.
An analysis of 25 global cities by real estate company Savills found a similar decline in Dubai affordability, where $2,000 a week now gets you a 2,890-square-foot apartment, down from 5,090 square feet in 2019. In Singapore, it gets you 2,080 square feet, down 29% from three years ago.
Global hotspots have shifted since the pandemic changed people’s priorities, highlighting quality of life and space over connectivity and urban density. Limited rental supply and a return to cities have also contributed to rising prices in places like London and New York, which posted double-digit declines in affordability.
“Prime residential markets in Dubai and Miami have seen renters flocking because of pandemic trends that appeal to this day: warmer climates, high quality of life, lower taxes, and growing job opportunities,” said Lucy Palk, analyst at Savills. “They’re also still cheaper than New York or Tokyo.”
Miami is attracting plenty of wealthy investors, including Citadel’s Ken Griffin. Dubai has seen a surge of international workers lured by the emirate’s tax incentives, high salaries and generous visa system. Singapore, on the other hand, has benefited from expats and wealthy Chinese leaving Hong Kong.
New York remains the most expensive city for prime renters, with $2,000 a week yielding just 900 square feet of prime property, down from 1,010 square feet in 2019. Hong Kong, Los Angeles, Tokyo and London are the next priciest locations, each granting less than 2,000 square feet of luxury real estate. Prime rents across those five cities rose 8% on average over the past three years.
This article was provided by Bloomberg News.