Residential rents will increase in 2023 despite global economic uncertainty
The United States, England and Singapore top the list of countries in which residential rents have increased the most in recent months.
According to the latest economic data, in 10 cities around the world, luxury rentals increased by an average of 10.2% in the 12 months prior to the third quarter of 2022, close to the peak of 11.9% registered in the first quarter of 2022 same year.
In the case of the United States, New York was the city that led the list for the third consecutive quarter. Despite annual growth falling nearly 40%, limited inventories and continued demand kept rentals high.
For example, according to StreetEasy, rental properties in Manhattan were down 5% during the last quarter, but 65% less compared to the times of the pandemic.
Increases in residential rents globally
Singapore ranks second in the list of countries with the highest increase in residential rents, with a 23% growth in luxury rentals in the last 12 months. This, thanks mainly to the opening of borders, which together with the introduction of new visas to attract the best talent from around the world, have generated an increase in demand.
The new rules announced in September 2022 mean that those looking to sell their private home and buy a resale flat not subsidized by the Housing and Development Board (HDB) now have to wait 15 months. Policy change that adds to the demand for rent, since the sellers choose to rent in the provisional.
Finally, London completes the podium of the cities with the highest increase in income. Although England’s capital saw a 19% increase in the year to Q3 2022, annual rental growth is down from 27% last quarter, reflecting the slowdown from the summer rental peak. But the demand remains strong.
Data from Knight Frank shows that the number of potential new tenants was 60% above the five-year average (excluding 2020) in October, while new listings were down by about a third.
Investing in BAI Capital is investing in the United States
With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from land acquisition to the development of mixed-use projects. Such as residences for the elderly, student residences, multifamily buildings for rentals and mixed use that include condos and retail.
Our mission is to safeguard the capital of the partners and the own capital under the minimum risk exposure. With a safe development and going through all the stages. Purchase of land, adjustment of urban zoning, commercial vision in architectural development and management of building permits. Then, we take charge of the capitalization, construction and exit with return of the capital and profits to the partners.
In this way, we guarantee fixed and stable returns for our client portfolio. In addition to having a confidential work protocol with encrypted web forms. Use of protected personal data and private meetings with our agents throughout Latin America.
We already told you how residential rents will increase in 2023 despite global economic uncertainty. If you are looking to protect your capital from inflation through investments with returns in dollars, or invest in projects that qualify for the EB-5 investor visa to get a Green Card, complete our form and an agent will contact you.
