Rental values are rising faster than underlying house prices in many of the world’s leading cities as demand from domestic and international corporate tenants in an increasingly supply-constrained global residential real estate market, with Paris now the most expensive city for tenants.
The Savills World Class Cities Index recorded an average rental rise of 2.3 per cent in the second half of 2011, compared to a rise of just 1% for capital values, with values in the ‘old world’ markets outperforming the ‘new world’ destinations with a 2.8 per cent increase compared to 1.8 per cent.



Letting




