2023 Brings a Gentle Easing in Global House Price Hikes AND YET Portugal Shines with an 11.4% Increase!
Picture this: A world where house prices are taking a leisurely stroll, slowing down in 2023. Why, you might ask? Well, central banks worldwide are raising benchmark interest rates in a bid to tame inflation, and the housing market is feeling the effects. In fact, house prices in as many as 56 countries are currently on their slowest upward journey since 2015. Why the slowdown? There's less frenzy in the demand for housing, and it's giving the existing supply a chance to catch its breath. But here's the exciting part - Portugal has earned itself a coveted spot, ranking ninth in global house price increases, with a remarkable 11.4 percent growth over the past year, up until March 2023.
Experts have declared this to be the 'slowest annual rate' of house price growth since the third quarter of 2015. It's a far cry from the heady days of the first quarter of 2022, when we witnessed a 11.1 percent surge in global house prices as markets roared back to life in the wake of the pandemic.
Now, let's dive into the nitty-gritty of the data for the year leading to the first quarter of 2023. The story reveals that house prices have been on the rise in most of the 56 countries analyzed, with a standout performance by Turkey, where prices galloped up by a staggering 132.8 percent, largely attributed to rampant inflation. North Macedonia (18.8 percent) and Croatia (17.3 percent) follow closely behind in the top three for the highest house price increases.
Portugal, our beloved country, proudly claims a spot in the top 10 markets that witnessed the most significant price growth over the past year, with a remarkable 11.4 percent increase. Meanwhile, our southern European neighbors, Spain (3.1 percent) and Italy (1.1 percent), saw their house prices rise at a more leisurely pace.
And in a twist of fate, house prices decided to go on a downward slide in 17 countries across the globe. Eight of them even saw their housing markets shrink by more than 5 percent, with South Korea (-15.7 percent), New Zealand (-13 percent), Hong Kong (-10.3 percent), and Sweden (-8.8 percent) leading the way in this gentle descent.
Origional source adaptation Idealista
