The pandemic caused a sharp rise in housing prices. According to the Global Price Index of the analytical publication Knight Frank, the average increase in real estate prices in 55 countries was 9.2%. Only two countries managed to stand out from the general statistics: India and Spain.
Spanish housing is on the lowest position in the rating of the consulting company – on the 55th place. At the end of June 2021, Spain recorded a 0.9% decrease in prices compared to the same period last year, while in India the drop was 0.5%.
In the ten most developed countries of the world, price growth exceeded 12%, which is twice as much as in the main developing countries, where this figure was 4.7%. Turkey tops the ranking with a price increase of 29.2%. The top ten in house price growth also included New Zealand with an increase of 25.9%, the USA – 18.6%, Australia – 16.4%, Canada – 16%, and Russia – 14.4%. In general, eighteen markets recorded double-digit growth in housing prices.
Germany ranked seventeenth in the world with an increase of 10.9% for the year, while France registered a 5.8% increase in house prices, ranking 34th. Italy increased prices in the residential sector by 1.7%, and Portugal rose by 8.6%.
Despite the general increase in value, in which Spain is involved, the consulting company notes that demand in some markets is slowing down. In the USA, the number of mortgage applications has declined, and the number of owners who want to buy new real estate has reached its lowest level in a decade: 28% in June 2021.
The prospect of higher interest rates in the markets of New Zealand, the United States, and the United Kingdom affects the mood of buyers. Nevertheless, the lifting of restrictions in several countries in Southwest Asia could trigger a new wave of active actions.