Slower global house price growth hides local market opportunities
Date: 23 March 2007 | 
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There are two noticeable trends at work across global housing markets:
Firstly, price growth is slowly but surely beginning to decline in most locations globally. The impact of lower interest rates has led to sharply higher prices across Europe, Asia and the Americas. This upward trend in asset prices is moving to a close as interest rates either remain level or begin to rise.
Secondly the emerging economies are still dominating the top of the growth table - with the recent EU accession states being classic examples. Growth in prices here reflects wider mortgage market reform and rising wealth in expanding economies.
Liam Bailey, Head of Knight Frank Residential Research, comments: -
“The next issue to consider is where next for prices? Too many people look to invest in the top growth location, (like Latvia) assuming that high growth will continue. It might be a more interesting and perhaps rewarding strategy to look at the bottom of the table and think which of these countries will see the next upturn.
“For various reasons Germany has underperformed as a nation in housing market terms for a decade. We think investors could do well to look behind the headline figure and look more closely at some of the German sub-markets.”
Press enquiries
Liam Bailey is available for comment on +44 (0) 20 7173 4966
Olivia Smith, Knight Frank Press Office, +44 (0) 20 7861 1034
Note: For full data analysis please see PDF.
About Liam Bailey
Liam Bailey is the head of Residential Research at Knight Frank. Residential Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, financial and corporate institutions. Our research reports are available at www.knightfrank.com/research
About The Knight Frank Global House Index
The Knight Frank Global House Index tracks average house prices across a comprehensive list of countries across the world. This unique index is based on an assessment of price changes in the broad mainstream housing markets of the countries covered.
About Knight Frank
Knight Frank and its New York-based partner, Newmark Knight Frank, operate over 140 offices in established and emerging property markets on five continents. Last year, the companies handled transactions valued at over $41 billion with annual revenues of over $545 million. For more information about Knight Frank, please visit www.knightfrank.com