Prime rents rose fastest in emerging markets in 2013 according to Knight Frank’s Prime Global Rental Index, which measures the performance of prime residential rents across 17 cities worldwide.

The index found that rents rose by 4.8% in 2013. Kate Everett-Allen at Knight Frank says: “The performance of the world’s prime rental markets is intrinsically tied to the health of each city’s respective employment market, in particular the business and financial services sector. Prime rents recorded weaker growth in 2013 (4.8%) than in 2012 (5.1%) as employment gains in 2013 proved marginal.

“Emerging markets outperformed the world’s top financial centres. Nairobi recorded the strongest rate of growth in annual terms in 2013. Prime rents rose by nearly 26% in 2013 as multinationals looked to strengthen their headcount in the Kenyan capital.

“Prime rents in Dubai ended the year almost 14% higher, down from an annual rate of growth of 16% last quarter. A two tier market emerged in the second half of 2013 with secondary locations recording a stronger rate of growth than those in the Emirate’s prime developments. Events in Syria and Egypt emphasised Dubai’s status as a regional safe haven.

“Although prime rents in Nairobi and Dubai recorded the strongest rate of annual growth in 2013, rents here are half, or in Nairobi’s case, as much as 70% below those found in London and New York.”