According to international property analyst Knight Frank, global residential prices are rising at their fastest rate in nearly three years. Prices are forecast to grow 5.6 percent on average in 2020, compared to 5.3 percent in 2019. The Pearl Qatar Properties | Real Estate Companies Qatar
In 2020, prices rose in 89 percent of countries and territories, with several emerging markets, including Turkey, which leads the index for the fourth quarter in a row, performing especially well.
Some of the main results are as follows:
In the year leading up to Q4 2020, Turkey has the highest annual price growth rate.
The average price change was 5.6 percent across the 56 countries and territories surveyed.
With annual price growth of 19 percent, New Zealand is the best-performing country in APAC.
In Q1 2018, the index's annual growth reached 5.6 percent for the first time.
With a -3.6 percent performance in the year leading up to Q4 2020, India is the worst-performing country.
In the last three months, many markets have risen in the rankings, including New Zealand (19%), Russia (14%), the United States (10%), Canada (9%), and the United Kingdom (9%).
Demand is being fueled by low interest rates, while inventory levels are low in some markets, with sellers reluctant to sell until they have found their next home.
Due to the travel bans, demand is coming from domestic buyers who have re-evaluated their lifestyles since the pandemic hit, with many now opting for home offices and outdoor space.
Not all economies, however, are improving; Europe is one region where a chasm is emerging. Austria (9%), Germany (8%), and France (6%), are gaining ground on Italy (1%), and Spain (2%). (-2 percent ). Price inflation in these Southern European economies is slowing due to tight price controls, rising unemployment, and a supply surplus in some regions.
Asia Pacific's performance remains relatively poor, despite its fairly effective handling of the pandemic. Despite the fact that New Zealand is in second place, Japan (5%) is ranked 27th in the region. Housing demand and price increases in Asia are concentrated in cities rather than across the continent.
Hong Kong and Malaysia also experienced negative annual price increase, and Singapore's rate of growth was just 2.5 percent.
The pace at which the vaccine is introduced and economies recover would have a direct effect on the housing market in 2021. Prices could fall as policymakers remove stimulus measures, putting jobs and mortgages at risk; however, the lifting of travel bans may help to mitigate this impact.