House prices continued to rise in 51 countries in 2022

Knight Frank has released its latest Global Residential Property Price Index for Q2 2022. The ranking tracks changes in average house prices in 56 countries and territories around the world. The index reflects nominal and real price growth in local currencies. In 2022 real estate prices have been on the rise.

It is important to note that due to rising indices, markets change very quickly, therefore, despite the fact that the Global Residential Property Price Index for Q2 2022 was presented very recently, the growth trend is slowing down or even plateauing in some markets.

Everyone expected a slowdown in residential real estate prices in the 2nd quarter, but this did not happen. The overall index is still growing at 10% per year. It only slightly decreased compared to the previous quarter (10.9%).

In 51 countries out of 56 countries and territories monitored, house prices continued to rise despite the clouds, or rather storms, on the economic horizon.

If inflation is taken into account, then real residential property prices rose by an average of only 1.6% per year by the second quarter of 2022, compared with 6.2% a year earlier.

The countries of Central and Eastern Europe continue to perform well, despite the proximity of the Ukrainian crisis. In 2022, real estate prices have been on the rise. Slovakia leads with 26% growth, the Czech Republic – 24%, Estonia 21%, Hungary 20%, Latvia 17% and Slovenia – 17%. These countries are in the top ten for price increases this quarter.

It should be noted that the three-digit annual increase in residential property prices in Turkey is 161%. This can be ignored altogether, given the country’s highest inflation in 24 years of 80%, and with current interest rates, this figure is even more irrelevant.

Source: https://content.knightfrank.com/research/84/documents/en/global-house-price-index-q2-2022-9334.pdf