Global house prices saw record growth in 2013, as Knight Frank’s Global House Price Index recorded average global property price growth of 8.4 per cent in 2013 compared with just 4.6 per cent in 2012.
However, property price growth in Europe – especially in countries located in the south of the continent – remains sluggish, although the rate of decline is slowing in countries such as France, Spain and the Netherlands.
Of the 56 countries included in the survey, 39 recorded positive annual price growth in 2013, whereas a year earlier only 27 countries fell into this category.
Dubai, China and Taiwan recorded the largest annual rise in mainstream house prices ending the year 34.8 per cent, 27.5 per cent and 15.1 per cent higher respectively.
However, despite Dubai’s stand out performance in 2013, mainstream prices there still remain around 25 per cent below their 2008 peak.
Ukraine, Croatia and Greece were the weakest housing markets in 2013, with house prices in these three countries ending the year 25.9 per cent, 14.4 per cent and 9.3 per cent lower respectively than they had started it.
However, Kate Everett-Allen, head of International Residential Research at Knight Frank, noted that some countries which had been struggling in the property doldrums for the past few years have recovered strongly in 2013.
“There is evidence that the fortunes of even the most embattled housing markets can change, and change swiftly. Prices in Ireland, the US, and the UK rebounded in 2013 [by 6.4 per cent, 11.3 per cent and 7 per cent respectively].
“Between 2009 and 2011 Ireland occupied the index’s bottom ranking on no fewer than seven occasions,” Everett-Allen continued. “Ireland now ranks in 19th position in terms of house price growth, above Germany, Austria and Switzerland.”