House prices globally continue to rise. According to Knight Frank’s Global House Price Index Q3 2021, the value of an average home increased by 9.4% in the 12 months to Q3 2021, up marginally from 9.2% during Q2.
54 of the 56 countries and territories tracked by the index saw prices rise year-on-year, only Malaysia and Morocco bucking the trend.
Furthermore, the proportion of housing markets witnessing annual price growth more than 10% now sits at 48%, up from 13% at the start of the pandemic.
Have prices peaked?
Despite the boom times, there are signs the rate of growth may have peaked in some parts of the world.
18 countries and territories saw their rate of annual price growth moderate between June and September 2021, among them some of the strongest performers since the start of Covid-19: New Zealand, the United States, and the United Kingdom. Here, interest rate hikes, changes to property taxes and affordability concerns are contributing to slower rates of growth.
Real house price growth
With inflation on the rise across key economies, the main results table shows both the nominal and real (inflation-adjusted) rate of price growth over a 12-month period.
Where next?
The real estate boom seen globally is expected to continue into 2022, Omicron and new variants permitting.
