Cities which support the creative and technological industries will see the highest rental growth until the end of 2019, according to Knight Frank's 2017 Global Cities Report.
Berlin and Madrid were singled out as Europe's fastest rising rental hotspots, which Knight Frank linked to their high concentrations of creative talent.
While Sydney topped the global index for likely rental growth 2015-2019 at 27.5%, Berlin came in as a close second at 25%.
The growth projection for Austin, Texas was 24.9%, while Madrid made it to fourth place on 21%.
'Three years ago London, New York and San Francisco were leading the tech charge but now we are seeing a new wave moving into pole position such as Berlin, Austin and Madrid. These cities are able to attract and retain ‘the iPhone generation’, which have an adaptive, free-thinking mindset and are invaluable to tech and creative businesses,' said James Roberts, chief economist, Knight Frank.
The only other European capital to make the global top 10 was Dublin, placed in ninth place for a growth forecast of 15.5%.
The index showed that rental growth will be less pronounced in mature tech locations such as London (7.1%) and San Francisco (5.1%), and those cities where a bias remains towards financial services, such as Hong Kong (4.5%) and Frankfurt (3.9%).
