Turkey shows highest growth in residential property prices

Turkey ranked first in the world in terms of the growth rate of prices for residential real estate, Report informs, citing Knight Frank, an international consulting group.

Knight Frank's study analyzes the situation in 56 countries and territories from the end of the first quarter of 2020 to the end of the first quarter of 2021.

As follows from the study, the cost of housing in Turkey has risen by 32% during this period.

New Zealand follows Turkey in the ranking with an indicator of 22.1%. The third is Luxembourg, with a 16.6% growth in property prices. The top ten also included Slovakia (15.5%), the US (13.2%), Sweden (13%), Austria (12.3%), the Netherlands (11.3%), Russia (11.1%), and Norway (10.9%).

As noted in the study, this year recorded the fastest growth in residential real estate prices in the world since the end of 2006. On average, the price change in the countries and territories included in the rating was 7.3%.

Thirteen countries recorded double-digit price increases in the first quarter of 2021. As such, Knight Frank does not find it surprising that there are talks about bubbles in the housing markets. The authorities of some countries have already begun to take measures aimed at containing house prices. For example, as indicated in the study, in New Zealand, China and Ireland, governments have tightened lending rules and increased stamp duty on second and subsequent real estate purchases.

The company predicts that by the end of the year, the activity of buyers will subside. The threat of new coronavirus variants, the creation of new vaccines or the suspension of vaccination may also contribute to lower prices.