Weak rouble sees moscow rents plummet

The agency's latest Prime Global Rental Index saw a notable slowdown this quarter, thanks to the Russian capital.

Moscow rents fell 16 per cent in the fourth quarter of 2014; a direct consequence of the rouble's falling value, as prime rents are measured in US dollars.

"At the start of 2014 the US dollar equated to 32.8 roubles, by the end it was closer to 56.5," explains Kate Everett-Allen, Partner, Residential Research.

Moscow's decline dragged the global index down. Combined with four other cities recording falling rental values - Vienna, Geneva, Singapore and Beijing - the index rose just 0.6 per cent in 2014, its weakest rate of growth since 2009.

"The weak index results underline the global economy’s fragility in 2014 but hides the fact that 12 of the 17 cities we cover saw luxury residential rents increase or remain static in 2014," adds Everett-Allen.

Tokyo leads the rankings with luxury rents ending the year 11.1 per cent, while the Middle East recorded the strong increase of all world regions, with a 6.5 per cent increase year-on-year.