Romania jumped from the 31st position in 2015 to the 15th in 2016 in Knight Frank’s global house price index. The consultancy says the local market has doubled its price growth rate in 2016, from 3.6 percent to 7.8 percent, and it expects this trend to maintain.
At a global level Iceland leads the ranking for the first time, with a house price increase of 14.7 percent per annum. The ranking also shows that out of the 55 analysed countries, 40 had posted price increases.
“The overall picture is one of stable or rising prices, despite the global landscape of political and economic uncertainty. The number of housing markets recording price rises has increased from (43 in 2015 to 47 in 2016). With higher inflation and diverging monetary policies expected in 2017, we may see a widening gap between the strongest and weakest performing market,” according to the consultancy.
Knight Frank’s global ranking has changed significantly in 2016 against the previous year. Turkey and Sweden have dropped from 1st and 3rd position in 2015 to 5th and 20th respectively in 2016, as a weakening lira, a rate increase to 8 percent and recent security concerns have dented household confidence in Turkey. Sweden, for its part, saw annual price growth halve from 12.3 percent in 2015 to 6.1 percent in 2016.
Other significant changes include China jumping from 43rd position in 2015 to 7th in 2016 with average prices now increasing by 10.8 percent per annum according to the country’s National Bureau of Statistics.
Whilst the top 10 has changed considerably, the bottom of the rankings table looks broadly familiar. Ukraine, Taiwan, Singapore and Cyprus continue to be characterized by weak growth either due to ongoing geopolitical crises, economic fragility or cooling measures which are artificially restraining growth.