Prices in key cities around the world are rising at their slowest rate since the third quarter of 2015, up by four per cent in the 12 months to March 2018, down from 6.4 per cent a year ago, the latest index shows.
According to Propertywire , the Indian city of Surat leads the annual rankings with a rise of 22 per cent over the 12 month period, followed by Izmir in Turkey with a rise of 16.5 per cent, Hong Kong up 15.6 per cent and Vancouver up 15.4 per cent.
The global residential cities index from Knight Frank also shows that prices rose by 14.9 per cent in Berlin, by 14.8 per cent in Rotterdam, by 14.4 per cent in Budapest, by 14.1 per cent in Hobart, Australia, and by 12.9 per cent in Seattle, which is the top performance in the United States.
At the other end of the scale prices fell by 7.2 per cent in Abu Dhabi, by 7.1 per cent in Turin, by 6.6 per cent in Genoa, by 6.5 per cent in Darwin, by 6.1 per cent in Moscow, by 4.9 per cent in Rio de Janeiro and in Oslo, by 4.8 per cent in Delhi and Dubai, and by 4.5 per cent in Chennai.
The index report points out that while a year ago 12 cities exceed 20 per cent growth per annum, this quarter only one city was in this category and this growth in the Indian city of Surat is largely due to an inordinately low base in the first quarter of 2017, caused by the unprecedented demonetisation of high value currency in the country.
Overall, the data shows that Europe’s upward trajectory continues. Eleven of the top 20 cities ranked by annual growth are in Europe with growth of 14.9 per cent in Berlin, 14.8 per cent in Rotterdam, 14.4 per cent in Budapest, 12 per cent in Edinburgh, 11.8 per cent in Reykjavik, 11.7 per cent in Porto and 11.3 per cent in Sofia.
A lack of supply has boosted prices in Seattle with growth of 12.9 per cent with San Francisco recording growth of 11.2 per cent and Los Angeles up 8.1 per cent. In the US, despite three rate rises in the year to March 2018 average prices across the 15 cities included in the index increased by 6.8 per cent over the 12 month period.
The comparable figure for the UK’s eight cities is 4.9 per cent with Edinburgh out in front and Aberdeen the weakest performer with pries down two per cent while London has also seen negative growth with prices down by 0.6 per cent.
Southern Europe is increasingly polarised. Whilst Italian cities are well-represented at the foot of the table, Spanish and Portuguese cities are registering stronger growth. Porto, Malaga and Madrid all sit high in the rankings with annual growth of 11.7 per cent, 10.4 per cent and 10.3 per cent respectively.
Originally pubished in The Punch