Record Global Home Price Growth in 2013
Global home prices experienced record growth in 2013, mirroring the upturn in the global economy.
The Global House Price Index released by property research firm Knight Frank increased by 8.4 percent last year, compared to 4.6 percent in 2012, representing the largest index increase since 1995.
Mainstream home prices increased by the greatest margin in the markets of Dubai, China and Taiwan, where prices grew by 35 percent, 28 percent and 15 percent, respectively.
Dubai's property market is recovering after having fallen dramatically during the collapse. However, it still has room for further growth.
"Despite Dubai's stand out performance in 2013, mainstream prices remain 25 percent below their 2008 peak," Kate Everett-Allen, Knight Frank International Residential Research, said in the report.
The improving job market and the continuation of low interest rates in Europe and the U.S. are fueling buyer confidence, the report shows.
Thirty nine countries recorded positive annual price growth last year, compared with 27 countries in 2012.
In 2013, emerging markets floundered economically, but managed to record strong home price performance. Turkey, Brazil, Indonesia and Colombia rank in the top ten for annual price growth, with each market recording double-digit growth.
The lower end of the home price growth spectrum is dominated by Europe. However, the rate of price decline is slowing in countries such as Spain, France and the Netherlands, Knight Frank reports.
The weakest markets in 2013 were Ukraine, Croatia and Greece, ending the year with home prices 26 percent, 14 percent and 9 percent lower respectively due to political tension and economic stagnation.
The new report highlights the recovery of the most embattled global housing markets. Prices in Ireland, one of the hardest hit during the down turn, have rebounded, with the market now listed at 19th on the home price growth index, higher than Germany, Austria and Switzerland.
"Prices in Ireland, the U.S., and the U.K. rebounded in 2013," the report states. "The speed with which stimulus measures are withdrawn (QE tapering), the ramping up, or down, of cooling measures in Asia and the repercussions of the political crisis in the Ukraine are likely to be the key determinants of the index results during the remainder of 2014."