Global House Price Index

In the second quarter of 2023, the annual growth of global house prices increased from 2.9% to 3.0%. While nearly four out of ten markets experienced price declines in the past year, this number decreased to about a third in the last three months, indicating a modest improvement in global market conditions.

Rising interest rates in most major economies since early 2022 have impacted prices, transaction volumes, and market liquidity in the housing sector. Nevertheless, signs of stabilization are emerging as peak interest rates approach, with strong demographic trends and limited housing inventory providing support to prices in markets such as Australia, the United States, and Canada.

Turkey leads in the index for annual growth, while South Korea, Sweden, Finland, New Zealand, and Hong Kong have experienced the largest price declines. The report suggests a moderate improvement in the housing market, but a full recovery is expected to take some time. Structural factors like housing shortages and limited investments are likely to reinforce price pressures on the housing market in the future.