House prices increase the most in emerging markets

House prices increase the most in emerging markets

Emerging markets saw the biggest house price increases over the past decade, according to the Lloyds TSB International Global Housing Market Review.

Overall, Indian house prices have risen by the most since 2001, having increased by 284% in real terms (after allowing for consumer price inflation) since 2001 - equivalent to an average annual rise of 14%. This is almost six times the 50% rise in real UK house prices over the same period and over 10 times the 23% rise seen in the Euro area.

Russia (209%) and South Africa (161%) recorded the next highest rises in property prices.

In Europe, five countries saw a better house performance than the eurozone average: France saw the largest increase (82%), followed by Belgium (69%), Finland (61%), Spain (46%) and Italy (31%). In contrast, there were real price declines in Ireland (-23%), Germany (-17%) and Portugal (-11%) over the decade.

In the rest of Europe, outside the Euro area, there were large gains in Norway (72%), Iceland (37%), Switzerland (30%) and Denmark (25%).

Suren Thiru, economist at Lloyds TSB International, said: "Looking forward, the outlook for house prices globally is likely to be determined in part by the pace at which the global economic recovery continues, the events in the eurozone as well as the economic prospects of individual countries."

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