According to Knight Frank, average home prices globally increased +7.4% in Q1 2021. This is strongest home price growth since before Great Recession
Average Home Prices Around the World Up +7.4% in Q1 2021
In its latest report published early last week, Knight Frank indicated that average home prices around the world rose +7.4% y/y during Q1 2021. Knight Frank said that this +7.4% y/y global home price growth was the strongest home price growth since before the Great Recession.
Additionally, 43 of the 150 cities, or 29%, tracked for this report experienced average home price growth in excess of +10%.
Average Home Prices Expected to Rise Even More
Kate Everett-Allen, the head of international residential research with Knight Frank and the author of this latest report, believes that average home prices around the world will likely continue rising, at least over the short term.
Everett-Allen offered up three factors that may push up prices even higher:
- Fear of missing out (FOMO) – Everett-Allen said, “…with borders (still) closed, investors may look closer to home to take advantage of rising prices…”
- Still advantageous lower mortgage rates
- More accrued savings may make second homes more possibl
Global Cities with Biggest Growth in Home Prices
The five global cities experiencing the biggest home price gains during Q1 2021 included:
- Ismir on Turkey’s Aegean coast – +34% y/y
- Ankara as Turkey’s capital city – +30.3% y/y
- Also ranked #2 on Global Residential Cities Index
- Wellington as New Zealand’s capital city – +30.1% y/y
- Istanbul – +28.8% y/y
- Some of this city’s price hike could be due to steep inflation
- Seoul as South Korea’s capital city – +26.1% y/y
Phoenix, the only US city to make the top 10 on this global ranking list, saw its average home prices grow +30.1% y/y in Q1 2021. Average home price growth for the 15 US cities included on this Knight Frank list came in at +14% y/y.
Not All Cities Seeing Positive Home Price Growth
Everett-Allen said, “It’s not a global boom – 22 cities are still seeing prices decline year-on-year with several key cities in India, Spain, Italy and Israel amongst them. Asian cities, whilst resilient, are not the powerhouses of growth they were in 2018 – Hong Kong posted +2.2% annual growth and Beijing 3.6% – although luxury sectors in both cities are faring much better.”
The three bottom cities on Knight Frank’s latest global home price growth rankings included:
- Dubai – -4.4% y/y
- Venice – -4.3% y/y
- Kolkata – -3.8%
Thanks to Knight Frank and MansionGlobal.