After a difficult period during the economic crisis of 2008, the housing market all over the world has been recovering nicely. However, not all areas are improving at the same rate, and if you want to invest internationally, it is worth comparing a few different regions of the world.
Best performing countries in the property market
Hong Kong property prices are estimated to have risen faster than any other country in the world. In the year between March 2014 and March 2015, the prices have risen by more than 19%. One of the reasons for the rise here is that there is a shortage of property. The second biggest climber in the global property market is Turkey, where prices have risen by 18.6%. The figures were published in the Knight Frank Global House Prices Index, and the countries that complete the top five are Ireland, Luxembourg and Estonia.
Measures taken in Hong Kong include asking prospective buyers to have larger deposits when they purchase, similar to the stance taken by UK banks when considering mortgage applications. In Hong Kong, buyers are expected to have 40% of the purchase price to put down. Also, it is not the luxury properties that are seeing this massive rise in cost in Hong Kong, but the smaller apartments.
Worst performing countries in the property market
Countries such as China, Japan and France all fared badly in the property market, recording losses for the year from March 2014 to March 2015. Countries such as Greece and the Ukraine all marked substantial drops in property prices, with the Ukraine at the bottom of the list with a drop of 15.5%. In comparison, the UK was ranked at 19thon the list with a small growth of 5.9%. Some areas of the UK have seen huge growth, while others have seen prices fall dramatically.
What about the Middle East?
Some of the best emerging markets for those who want to invest in property are in the Middle East. In Dubai, for example, the cost of the average apartment rose by more than 14%, while villa costs rose by nearly 9%. One of the reasons why the Middle East is becoming more popular for property investment is the rapid move towards an economy that is not solely reliant on oil and gas. With more tourists arriving each week, people are beginning to see the region as a good place to live as well.
When it comes to investing in property, the data shows that you should be looking at the world as a whole, because there are opportunities in all regions. The rapid development of the Middle East means that investing in property there is something that you can now consider as a long-term option, as there are fewer restrictions on foreign buyers.