House and apartment prices around the world are rising the fastest since before the global financial crisis. The average price of residential real estate rose by 7.3 percent in the 12 months to March, the fastest growth since the end of 2006. This is according to an index compiled by the independent real estate consulting company Knight Frank, which was reported by Bloomberg. The Czechia was among the 15 countries with the highest growth.
The average price increased the most in Turkey, by 32 percent. It was followed by New Zealand with 22.1 percent and Luxembourg, where the price of residential real estate rose by 16.6 percent.
Slovakia was fourth with a growth of 15.5 percent and the top five was closed by the United States, where the price rose by 13.2 percent, the highest since December 2005. In the Czech Republic, which ranked 15th, the average price rose by 8.9 percent.
The rise in prices thus follows the madness that was recorded during the pandemic in many markets, from New Zealand to Canada and Singapore. Massive fiscal and monetary stimulus to support economies during the health crisis has spurred flourishing in the real estate market around the world. This also raises concerns about bubbles, and several countries have already cooled the market.
New Zealand has removed tax incentives for real estate investors, and the government expects real estate price growth to slow to 0.9 percent by June next year. China has issued a number of restrictions on developers and bank lending to the real estate sector.
“With governments taking action and fiscal stimulus ending in a number of markets later this year, buyer sentiment is likely to be less optimistic,” said Knight Frank. The threat of new coronavirus variants and intermittent vaccination could also put downward pressure on price growth.
The index compares average prices in 56 countries and territories.