Europe’s boom continues, sharp slowdown in the Middle East, Latin America, New Zealand and Asia
House prices continue to rise in most of Europe but the momentum is weaker. Six of the ten strongest housing markets in the global survey are in Europe and house prices have risen in 18 of the 22 European housing markets for which figures were available during the year to Q2 2017. However, only ten European housing markets showed stronger upward momentum during Q2 2017, while the 12 markets showed weaker momentum. Cyprus was not included in the survey.
Iceland is now the strongest housing market in our global survey, amidst spectacular economic growth. Nationwide house prices surged 21.28% y-o-y in Q2 2017, sharply up from last year’s 6.34% growth and the highest increase since Q4 2005. This surge is attributable to strong demand, coupled with limited housing supply, especially in the capital city of Reykjavik. Quarter-on-quarter, house prices increased 5.76% during the latest quarter.
Ireland’s house prices continue to surge, fuelled by robust economic growth. Residential property prices were up by 13.52% during the year to Q2 2017, a sharp increase from last year’s 4.57% rise. On a quarterly basis, Irish house prices increased 4.7% in Q2 2017.
Romania’s housing market continues
to perform
well, with the average selling price of apartments rising by 8.87% during the year to Q2 2017. Quarter-on-quarter, Romanian house prices increased 1.95% during the latest quarter.
Sweden’s housing market remains strong, despite the introduction of new amortization requirements in June 2016 that aim to curb speculative demand. The nationwide house price index surged 7.5% during the year to Q2 2017. House prices increased 2.34% q-o-q during the latest quarter.
The Netherlands’ housing market continues to grow stronger, with the average purchase price of all dwellings rising by 7.44% during the year to Q2 2017, the strongest rise in more than 16 years. On a quarterly basis, house prices rose slightly by 0.68% in Q2 2017.
Other strong European housing markets included Germany, with house prices rising by 6.96% during the year to Q2 2017, followed by the Slovak Republic (6.02%), Norway (4.71%), Riga, Latvia (4.68%), Tallinn, Estonia (4.25%), and Portugal (3.47%).
Somewhat weaker European housing markets included Montenegro with house prices rising by 2.8% y-o-y in Q2 2017, Turkey (1.63%), Vilnius, Lithuania (1.48%), Switzerland (1.1%), Spain (0.85%), Finland (0.41%), and the UK (0.22%).
House prices fell in all four Middle Eastern housing markets for which figures were available during the year to Q2 2017.
Qatar’s housing market is very weak, amidst a sharp economic slowdown and the ongoing diplomatic crisis in the region. The nationwide real estate price index dropped 6.25% during the year to Q2 2017, a sharp turnaround from the previous year’s rise of 1.75%. However property prices increased 1.1% q-o-q during the latest quarter.
Egypt remains weak, with the nationwide real estate index falling by 5.32% during the year to Q2 2017, an improvement from the annual decline of 11.2% a year earlier. House prices fell by 3.92% during the latest quarter.
Dubai’s residential property prices fell 2.51% during the year to Q2 2017, an improvement from the price decline of 6.96% a year earlier. But it was the tenth consecutive quarter of y-o-y house price falls. House prices fell by 0.06% during the latest quarter.
Israel’s decade-long house price boom could now be over, as government cooling measures intensify. The nationwide average price of owner-occupied dwellings dropped 1.93% yo-y in Q2 2017, a sharp turnaround from the annual rise of 5.31% in Q2 2016. House prices fell by 4.25% q-o-q in Q2 2017.