Prices in key global cities down to slowest growth rate
The Indian city of Surat leads the annual rankings with a rise of 22per cent over the 12 month period, followed by Izmir in Turkey with a rise of 16.5per cent, Hong Kong up 15.6per cent and Vancouver up 15.4per cent.
The global residential cities index from Knight Frank also shows that prices rose by 14.9per cent in Berlin, by 14.8per cent in Rotterdam, by 14.4per cent in Budapest, by 14.1per cent in Hobart, Australia, and by 12.9 per cent in Seattle, which is the top performance in the United States.
At the other end of the scale prices fell by 7.2per cent in Abu Dhabi, by 7.1per cent in Turin, by 6.6per cent in Genoa, by 6.5per cent in Darwin, by 6.1per cent in Moscow, by 4.9per cent in Rio de Janeiro and in Oslo, by 4.8per cent in Delhi and Dubai, and by 4.5per cent in Chennai.
The index report points out that while a year ago 12 cities exceed 20 per cent growth per annum, this quarter only one city was in this category and this growth in the Indian city of Surat is largely due to an inordinately low base in the first quarter of 2017, caused by the unprecedented demonetisation of high value currency in the country.
Overall, the data shows that Europe’s upward trajectory continues. Eleven of the top 20 cities ranked by annual growth are in Europe with growth of 14.9per cent in Berlin, 14.8per cent in Rotterdam, 14.4per cent in Budapest and 12per cent in Edinburgh.
The comparable figure for the UK’s eight cities is 4.9per cent with Edinburgh out in front and Aberdeen the weakest performer with pries down 2per cent while London has also seen negative growth with prices down by 0.6per cent.
Southern Europe is increasingly polarised. Whilst Italian cities are well-represented at the foot of the table, Spanish and Portuguese cities are registering stronger growth.
Porto, Malaga and Madrid all sit high in the rankings with annual growth of 11.7per cent, 10.4per cent and 10.3per cent respectively.
The report also reveals that divergent markets are evident not just at a regional level but at a country level as well.
The 10 countries with the largest gap between their strongest and weakest performing city is synonymous with a list of the world’s largest economies as all 10 occupy a seat at the G20.
India leads the list with a gap of 27per cent points between Surat and Delhi.
“The increased use of macro prudential measures to curb price inflation along with escalating affordability constraints account for the index’s weaker performance,” said Kate Everett-Allen, head of international residential research at Knight Frank.