Global house prices: record growth in 2013; Dubai top, Turkey 5th

Sunday, March 16, 2014

Global house prices: record growth in 2013; Dubai top, Turkey 5th

Some more evidence that the overseas property markets are picking up after the global downturn.

Knight Frank's Global House Price Index showed the highest annual rate since the index started in 1995, with an overall rise of 8.4 per cent.

Dubai recorded the largest annual rise in mainstream property prices, but prices remain 25 per cent below their 2008 peak.

Ukraine, Croatia and Greece were the weakest-performing housing markets in 2013.

In 2013, house prices rose in 39 countries compared with 27 in 2012, and European countries still dominate the bottom of the rankings but in most cases their rate of decline slowed in 2013.

At the bottom end of the scale, there is evidence that the fortunes of even the most embattled housing markets can change, and change swiftly. Prices in Ireland, the US, and the UK rebounded in 2013.

Strong emerging markets

Several emerging markets, despite their economic wobble in 2013, still recorded a strong performance.

Turkey, Brazil, Indonesia and Colombia are ranked in the top ten in terms of annual price growth, each having recorded double-digit growth.

Dubai, China and Taiwan recorded the largest annual rise in mainstream house prices ending the year 35 per cent, 28 per cent and 15 per cent higher respectively.

Our Top Ten Places to Buy 2014? Turkey leads the way...

So how did of A Place in the Sun's ten most popular markets fare?

Turkey leads the way at number 5, with the United States next up at number nine but clearly bargain-hunters are heading for static markets where there are still rich pickings - or great deals to be had.

Improving employment prospects and the continuation of low interest rates in Europe are together fuelling buyer confidence and Malta appears at number 35, closely followed by Portugal (number 40), France at 44.

Then your favourite destinations dominate 'bottom of the table' positions, with Spain at 50, Italy at 51, Cyprus at 52, Greece at 54 and Croatia at 55.

Yes, Europe continues to dominate the lower half of the table but the rate of decline is slowing in countries such as France, Spain and the Netherlands. A big wave of international investment in the second half of 2013 in Spain should ensure that this country's position will rise in the index this year.

However the political crisis in the Ukraine means that this nation will unlikely improve from its bottom spot at number 56 - it showed minus 25.9 per cent growth in 2013.

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A Place In The Sun