World real estate markets

What's going on there? Where is property growing and where is it falling? Where does it make sense to invest, and which countries have lost their former leadership positions? Trying to figure it out.

Everyone knows that the Russian real estate market, at best, shows no growth. Even in rubles. What can we say about the calculation in euros. In this regard, many Russian investors turned their eyes to the world real estate markets. What's going on there? Where is property growing and where is it falling? Where does it make sense to invest, and which countries have lost their former leadership positions? Trying to figure it out. A fresh report from Knight Frank on prices for residential real estate around the world will help us with this.

So, in general, world property prices in the second quarter of 2018 (relative to the same period in 2017) showed a small but steady growth. Quite reasonable. Knight Frank's research - Global House Price Index - covers 57 countries. Of these states, only seven have prices declined. While 5 years ago prices were falling in 19 states, and in the already incredibly distant 2008 crisis, as much as 40!

The growth factors were the general recovery of economies, and the continued development of tourism, and the arrival of large, primarily Asian investors, and a general shortage of proposals, and low (if not negative) deposits in European banks. In general, a lot of things are happening in the world that are steadily causing property prices to rise.

Now let's move on to the ranking, growth leaders.

The first place unexpectedly for many took ..... Malta! Yes, this tiny and little-known island 'added' as much as 17%! Hong Kong. The presence of Hong Kong in the top three will hardly surprise anyone. True, the second place for him is failure. After all, the country was at the top for as many as 10 (!) Quarters in a row. Growth 16%.
Latvia .... By the nature of my work, I often communicate with clients and often hear: 'Latvia? Yes, there is a crisis! Everyone's gone! They live in poverty! '.... Poverty is poverty, and real estate prices there rose by 14%. Draw your own conclusions, gentlemen. Turkey. And this is quite unexpected. I think that the echoes of the overthrow of the national currency have not yet had time to really affect the real estate market. While it is growing by 11%. But for how long?

Who is the fifth? Bulgaria! Yes, the one that is 'not abroad'. Bulgaria is developing incredibly fast, occupying the first lines in a number of growth indicators in Europe! However, this topic is worthy of a separate article. And now it is + 8.2%.

Knight Frank gives the sixth place wholesale to Eastern Europe. The average growth in property prices in the eastern countries of the Old World is higher than in the western countries (+ 5.1%). GDP growth there is also more noticeable - 3.9% against 2.8%. Relatively low real estate prices, economic growth and, as a consequence, the growth of production (the emergence of jobs) - all this contributes to a fairly rapid 'rise' - + 8%. The seventh line is, perhaps, the most stable participant in the rating - Germany. Yes, relatively small, growth of 5.3% is not very impressive. But, frankly, there is nowhere to grow. Germany is attractive, rather, not by its outstanding growth (although there are places where growth of 20% was recorded in 2017), but by the constancy of this growth. The country has not remembered the price drop for several decades. It is interesting that one of the outsiders of the rating is our neighbors - Ukraine. -4.5%. This is the worst result among all countries.

Among the countries that showed negative dynamics - Peru (-1.6%), Saudi Arabia (-1.3%), Brazil (-0.75), Italy (-0.4%), Finland (-0.3%) And Israel (-0.2%). But the countries with growing markets are Spain (2.7%), Czech Republic (7.7%), France (3.1%), Greece (0.8%), Portugal (6.1%).

I would like to say that this rating should by no means be taken as a basis for choosing a country, place and investment object. Domestic markets, at times, show very different indicators. From very large to sad small. Rather, it is the same 'average temperature' that allows, in general, to understand what is happening with real estate in the world.

And what about Russia? The Russian Federation recorded a slight increase of 1.5%. This is in rubles. Given the recent fall in the euro, this can hardly be considered growth.

Alexander Elizarov
Real Estate Agency "Park-Invest"
Saint-Petersberg, Russia
Managing Partner 

Mobile/viber: +7 921 965-0664
Mobile: +49 176 349-531-52
Skype: direktor0612

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