News

Half of real estate markets in the world are going on falling. However there are some regions that still show positive dynamic of growth. Yearly growth of world’s real estate prices in the second quarter of current year constitutes 4,8% against 6,1% in the same period one year earlier. This data is represented in Global House Price Index that is provided by the company Knight Frank.

Prices are falling on the half of the markets that are represented in the Index. Most of Continental Europe is marked by low growth or even by decrease in prices. However real estate prices are still growing in Asia and Eastern Europe. Lithuania, Denmark and New Zealand have been added to the list of countries where real estate prices are rapidly decreasing. Lithuanian real estate has the worst indexes due to price decrease of 24,1%.

Bulgaria with its yearly real estate price growth of 32,3% is leading in terms of growth. Slovakia, Russia, Czech Republic and Hong Kong are following Bulgaria and have average yearly real estate price growth of 25%. However in order to get whole picture of the situation these indexes has to be analysed more thoroughly.

“Even though Bulgarian real estate prices have increased for 68% within two years and even though there is still a high demand for real estate due to foreign investors and strong economical growth, some dreads are beginning spread that problems will lead to overage of supply which especially can be felt in the seashore areas.” – emphasizes Nick Barnes, the leader of international research of the company Knight Frank.

Strong economical growth has also positive influence on the real estate markets in Chez Republic and Slovakia. But growth of Chez economy is most likely to slow down within several following years. At the same time inflation and huge expenses destabilize markets in Baltic countries. Great Britain perspectives are “not very optimistic” and Knight Frank’s report does not forecast any growth in the country earlier than the year of 2010. Even though low unemployment rate and few bankruptcies in the country contribute to the situation. Considerable decrease in real estate prices is most likely to expect in Spain in the second half of current year.

At the same time in Asia Hong Kong has the most growing market which increase constitutes 9,2% within a year. Prices in Singapore on the other hand are falling and market is cooling down.

Australian and New Zealand real estate markets are also experiencing decrease. USA is marked by the second highest decrease of real estate prices. However there are some signs of improvement over there especially in such cities as Denver, Boston and Dallas.
California and Florida are characterized by the highest price decrease which amounts to 12% during last year.

In the near Canada on the other hand prices has grown for 1,8% within the second quarter and now are 4,8% higher than in the same period last year.