Global index of change in prices for residential real estate in the capitals and main global cities in the 2nd quarter of 2020
Global index of change in prices for residential real estate in the capitals and main global cities in the 2nd quarter of 2020. According to the Knight Frank research, the Turkish cities of Izmir, Ankara and Istanbul took the first three places in the rating of growth in housing prices among 150 cities of the world. The reason for this was the weak Turkish lira. At the same time, the overall rise in house prices has decreased due to the COVID-19 pandemic.
In Q2 2020, residential property prices in 150 global cities increased by an average of 3.4% compared to the Q2 2019. This is a very small decline compared to Q1 growth, which amounted to 3.6% in annual terms. This suggests that the massive economic shocks caused by the COVID-19 pandemic have yet to hit urban housing prices.
In the Turkish port of Izmir, the country’s third-most populous city, house prices rose 28.1%, followed by Turkey’s capital Ankara with 26.4% growth and Istanbul with 20.2% year-on-year growth.
Turkish cities now rank first for three quarters in a row. Strong demand and limited supply have been driven by the weakening of the lira and the growth in the number of citizens – Turkey’s population has increased by 12 million to 83 million in the last decade alone. And the weak lira, whose rate is now about 7.6 per US dollar, increases demand in the Gulf countries.
The rest of the cities included in the top ten:
Manila: + 18.3%
St. Petersburg (Russia): + 16.2%,
Seoul: + 15.2%
Luxembourg: 13.9%
Ottawa: 13%
Zagreb: 12.6%
Halifax (Canada): 11.8%
The 11th place in the ranking is occupied by the capital of Ukraine Kiev: + 11.2%, but again it should be borne in mind that price increases are estimated in local currency.
Ljubljana is ranked 104th in the Global Index with a 1.4% increase in property prices.
However, there are some signs of weakening construction productivity. The share of cities in which prices are declining on an annualized basis increased from 15% to 19%, which probably reflects increased economic uncertainty. The number of cities with double-digit annual price increases fell from 20 to 16 compared to the same period a year earlier.
Abu Dhabi and Dubai were at the very bottom of the ranking: prices there fell by 8.3% and 6.6%, respectively. They have been joined by many Indian cities, including Delhi and Mumbai, where prices drop dramatically every year.
