Property is the latest commodity to disappoint investors, according to new research.
Only the Middle East is showing any real growth in prices with a 9.6% average increase in house prices, says the latest Global House Price Index for the quarter ending September 2014.
The rest are ‘anaemic’ with the next best, South America, posting just a 1.6% increase.
A handful of the 54 countries monitored have double digit growth –
- Ireland (15.0%)
- Turkey (14.0%)
- Dubai (12.5%)
- United Kingdom (10.5%)
- Estonia (10.0%)
- Colombia (10.0%).
Out of the rest, Belgium stood still, while values in 15 other countries were all in negative territory.
Uncertainty and stagnation
Uncertainty over the global economy, Eurozone stagnation and a worse than expected property price recovery in the US are all blamed as factors in the lack of confidence in the property market by the company.
The worst property market is Cyprus – showing a 9.2% drop in prices year-on-year, followed by Slovenia (-8.8%) and Greece (-7.7%)
“Ireland is showing a remarkable performance, “said Knight Franks Kate Everett-Allen.
“Between 2009 and 2012, the country languished around the foot of the table, but despite soaring prices, they still lag the peak of 2007 by 40%.”
|Global House Price Index - Q3 2014|
|Rank||Country||12-month % change|
|*Asking prices **Provisional data|
|Source: Knight Frank|