Turkey tops world ranking with 18.9% house price growth
Dubai not listed in latest Knight Frank Global House Price Index
Turkey has topped a global ranking of countries by growth in property prices, having recorded an 18.9% annual increase, according to the UK estate agency Knight Frank.
Global house prices rose by 2.7% in the year to September, far higher than the 0.1% annual increase seen the previous quarter, according to the Knight Frank Global House Price Index.
But with a US rate rise imminent, the agency warned of “significant repercussions for the world’s already-fragile” emerging markets.
“A US rate rise will have repercussions not just for the US housing market, but for those currencies pegged to the US dollar as well as emerging markets globally,” said Knight Frank’s Kate Everett-Allen.
Turkey topped the index, with a 18.9% annual increase in the year to September, although Knight Frank said that was based on the latest available data from the second quarter.
“Strong levels of foreign investment, an expanding population… and a slowdown in construction explain the upward pressure on prices,” Knight Frank said.
Four other countries recorded double-digit annual price growth: Hong Kong, Sweden, New Zealand and Luxembourg.
Scandinavian countries are “performing strongly”, with house prices rising on average by 7.8% year-on-year, Knight Frank said. The pace of decline in China has slowed, from -5.7% last quarter to -2.0% in the year to September.
Dubai – which was ranked bottom of the Knight Frank league last quarter, with a 12.2% annual decline in prices – was not included in the latest index published today. Knight Frank representatives were not immediately available for comment regarding the reason for this.
