According to the Global Property Guide, in the first quarter of 2021, the growth of housing prices around the world has significantly accelerated. The reasons for this are low interest rates and monetary easing. Residential property prices increased in 43 of the 57 countries analyzed.
Leaders. By the end of the first quarter of 2021, housing prices rose the most in Montenegro (+28.7%), Puerto Rico (+23.68%), Egypt (+22.61%), New Zealand (+22.39%) and Sri Lanka (+15.93%).
At the moment Montenegro has the strongest real estate market. And it is especially noticeable in comparison to a previous year, when the price fall was 8,2% y-o-y. For Puerto Rico it is also a sharp change after a decline of 3,28% in the first quarter of 2020. Egypt when through a harsh decline of 34,14% last year, so it is a big comeback for the market. Finally, New Zealand and Sri Lanka both skyrocketed after the fall in 2020, with serious compensation of the past results.
Outsiders. The largest declines compared to the same period last year were in the central business district of Makati, the Philippines (-23.59%), Saudi Arabia (-4.68%), Phnom Penh, Cambodia (-3.76%), Romania (-3.28%) and Qatar (-2.94%).
With the outsiders the picture looks opposite. Romania experiences a good y-o-y growth with 9,51% last year, yet this time house prices fell q-o-q. Though the forecast isn't that bad due to predicted economic growth. The Philippines performed the worst at the moment. The average price on a luxury apartment fell by 23,59% and it seems to get lower in the nearest future. Both Qatar's and Saudi Arabia's markets are struggling. The fall is not too big to be worried of and on the basis of q-o-q they got slightly bigger. Soon we will be able to estimate how serious the situation will turn out to be.
* All price changes are adjusted for inflation