Knight Frank has named the countries with the fastest growth in real estate prices.

What has happened? Annual global house price growth rose slightly from 2.9% in Q1 2023 to 3.0% in Q2 2023.

The situation. The increase in interest rates on loans, which has been observed in most countries of the world since the beginning of 2022, has had a significant impact on the cost of housing, transaction volumes and liquidity of properties.

Financial and credit conditions have tightened, borrowing rates have risen, and as a result house price growth has moderated and in many markets turned negative.

However, in the second quarter of 2023, global markets began to stabilize. Interest rates have fallen from a peak of 10.9% to a more reasonable 3%.

The main reasons. Strong demographic trends in major markets, limited inventory of houses for sale, and significant delays to new build projects have led to a correction in pricing, and in some countries to an increase in housing prices.

 Knight Frank Global House Price Index in popular locations for investments in the II quarter of 2023:

Forecasts. Despite some improvements in markets, experts believe that the effects of high interest rates and tight credit conditions will continue to keep prices down for some time.

However, the medium term outlook for housing markets is likely to be dominated by low supply and strong demand which will add to upward pricing pressures from late 2024 and beyond.

Source: Knight Frank

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