The latest figures published by Knight Frank in its Global House Price Index
for the first quarter of the year show that, overall, the value of residential properties around the world was largely flat. Indeed, the data paints a mixed picture, with half of the countries surveyed experiencing negative or limited growth.
Meanwhile, Asian nations continued to see house prices rise, with Hong Kong posting a 24.2 per cent annual increase to put it firmly at the top of the table. India was not far behind with values on its property market boosted by 21.9 per cent.
Property investments in France
may prove to have been lucrative, with the country jumping up from 30th position a year ago to sixth following the latest figures, making it the best-performing European nation with growth of 8.7 per cent.
Liam Bailey, head of residential research at Knight Frank, pointed out that overall the global performance is down on the final quarter of last year, falling from 3.3 per cent to 1.8 per cent. He stated: "Price growth, while not stalling, has faltered in Q1 2011, pointing to ongoing problems underlying the world's housing markets."
He went on to predict that growth in residential property prices will continue to slow throughout the year, before embarking on a gradual recovery in 2012. Intervention from Asian governments to curb house price inflation and return it to sustainable levels will be a key factor in the sector's performance, Mr Bailey added.
However, a Knight Frank report from earlier this month indicated that commercial property markets in Europe are beginning to recover, with rental rises noted in Moscow, London's West End district, Stockholm, Paris and Frankfurt. Average prime office rents across the continent increased year-on-year by 5.6 per cent.
The commercial property investment
market experienced very little movement in prime yields during the three months to June. Matthew Colbourne, senior international research analyst, commented that this indicates "the market is pausing for breath" adding that "investors remain cautious over the general economic outlook and find it difficult to identify value at the prime end of the market".
- Wednesday 22 June 2011