The growth of real estate prices has declined significantly due to the many global economic uncertainties. This is the result of calculations by the consulting firm Knight Frank.
The average growth in 56 countries was only 3.4 percent in the second quarter - the lowest level in almost seven years. The growth has already fallen for the sixth consecutive quarter, says Knight Frank analyst Kate Everett-Allen. By mid-2017, real estate prices had risen almost twice as fast.
The main reasons for the decline are, according to Everett-Allen of Brexit, the political protests in Hong Kong, the weaker economic forecasts in many countries and the trade conflicts between the US and China and between Japan and South Korea.
The six of the world's seven most important industrial countries (G7) have suffered a significant slowdown in their growth rates over the last twelve months, while real estate prices have fallen in Italy . Only in France did they increase slightly more strongly year-on-year.
The largest growth of the analyzed countries was recorded for the first time since 2010 China . However, the country is the weakest top performer since the first quarter of 2009, rising by just under eleven percent.
In the global ranking, Great Britain slipped from its 36th place last year to 48th place in the face of growing Brexit uncertainty.
Global Real Estate Index
|rank||country||Price increase 2018-2019|
Source: Knight Frank; numbers in percent