Knight Frank research shows a slowing in property price rises
Despite rising for eight consecutive quarters the Global House Price Index, compiled on a quarterly basis by Knight Frank, shows that the rate of growth slowed in the first three months of 2014.
The Knight Frank Global House Price Index rose by 0.6% in the first quarter of 2014, a marginally slower rate than the 1.2% rise recorded in the fourth quarter of 2013.
It is often the case that the fourth quarter of the year sees a peak in property sales as buyers make an extra effort to close deals before the Christmas and New Year period. This invariably leads to a quieter first quarter of the following year.
At the top of the table Dubai showed the highest 12-month change, with an increase of 27.7%, however prices only rose by 3.4% in the Q4 2013-Q1 2014 period, placing it in 4th in terms of quarterly growth.
The other end of the table is mostly dominated by countries in Eastern and Southern Europe, with house prices in France, Spain, Italy, Greece and Croatia all recording downward movement. Singapore and Japan are the only non-European countries in the bottom 14 rankings. However, for the first time since 2008 none of the 54 countries in the index recorded an annual price fall of 10% or more.
Kate Everett-Allen from Knight Frank comments “We expect to see the index’s performance strengthen again in the second quarter. All eyes will remain on central banks, in particular the Federal Reserve, the Bank of England and the European Central Bank. The issue is not when interest rates rise but the speed and extent to which they do.”
The Knight Frank Global House Price Index monitors the performance of residential markets across the world and is widely read by expats, especially those moving to Europe or looking to make investments in international property. If you are considering moving to Europe as an expat, get in touch to find out more information on Cadogan Tate’s international removals service.
Information correct at time of publication