Europe records weakest house price growth
19 September 2014 – Knight Frank Asia Pacific, the independent global property consultancy, today releases its Global House Price Index for Q2. More countries recorded a rise in house prices in the year to June 2014 than at any point since the start of the global financial crisis but Europe is still lagging behind.
The index presents a mixed picture this quarter. The average rate of annual growth has slowed from 7.1% in March to 5.2% in June, but the rate of quarterly growth has picked up, rising from 0.6% over the first quarter to 1.6% in the second.
A few European countries have separated from the pack, and risen up the table in the last quarter suggesting a two-speed Europe is emerging: Turkey, Ireland and the UK are the frontrunners; whilst Cyprus, Greece and Slovenia are firmly lodged at the foot of the table (see below).
Kate Everett-Allen, Knight Frank, International Residential Research says, “The overall trajectory of the index is an upward one with 40 of the 54 countries tracked by the index recording flat or rising prices on an annual basis.”
Key Findings Q2 2014:
· The Knight Frank Global House Price Index increased by 5.2% in the 12 months to June 2014.
· Dubai tops the annual rankings for the fifth consecutive quarter.
· Ireland has jumped from 54th to 3rd position in the annual price change rankings in less than two years.
· The rate of price growth has slowed in the US, from 10.3% in year to March, to 6.2% in year to June.
· The index now stands 14.3% above its financial crisis low in Q2 2009.