Luxury residential rents across many of the world’s main cities are continuing to fall, the latest figures show.

Knight Frank’s Prime Global Rental Index, which tracks the change in luxury residential rents across 17 cities globally, dropped for a third consecutive quarter with rents depreciating by an average of 0.5% in the year to March 2016.

Of the 17 cities tracked by the index, 11 have recorded flat or falling prime rents over the last 12 months.

Toronto leads the rankings with prime rents rising by 8.9%, supported largely by strong demand for prime rental properties, combined with a low vacancy rate for condominium apartments.

In contrast, prime rents in Nairobi fell by 7.9% in the 12 months to March, as international demand weakened.

In London, the Knight Frank figures show that prime rental growth slowed to -1% in the year to March 2016, the lowest annual rate since May 2014. However, the total rental yield which is a combination of capital growth and rental yield was 3.7% in the year to March, outperforming benchmark hedge fund and stock market indices.

A notable rise in the supply of luxury homes coming onto the prime rental market in New York has seen prime rents fall in the Big Apple.  

North America remains the best performing region with average prime rents rising by an average of 3.3% in the year to March.

Africa has displaced Europe as the weakest performing region with rents falling on average by 3.2% annually.

Uncertainty in global markets, caused in part by Brexit, the US presidential election and the timing of the next US rate hike is set to place further downward pressure on global prime rental values across many cities around the world.