Home prices rose an average of 11% in 150 major cities around the world in the third quarter
The Turkish city of Izmir ranked as the fastest growing housing market in the third quarter of 2021, a bullish year for real estate markets around the world, according to a report released Thursday by Knight Frank.
With annual gains of 34.8% recorded over the three-month period, Izmir on Turkey’s Aegean coast leads the ranking of the 150 cities tracked by the real estate agency and real estate consultant, including 93 % saw prices increase over the 12 month period.
Collectively, the 150 communities saw home values increase 10.6% per year in the last quarter, the fastest rate of price growth in nearly 17 years, since the start of 2005, according to the report.
And placing more emphasis on prosperous housing markets this year, double-digit gains recorded in nearly half (44%) of those cities.
“Prices have been pushed up by government stimulus, savings during closings, a pandemic-induced reassessment of lifestyles as well as low interest rates,” Kate Everett-Allen wrote. , Head of International Residential Research at Knight Frank, in the report.
“What happens next depends on how quickly interest rates start to rise, the impact of Omicron and the rigidity of higher inflation, which could reduce disposable income and weaken buyer sentiment,” she continued.
Cities in New Zealand, the United States, Australia and Canada were particularly well represented among the top performing urban markets.
Wellington, New Zealand, followed just behind Izmir, with gains of 33.5%, and Phoenix came third at 33.1%.
Halifax, Canada, and Hobart, Australia, rounded out the top five, with price growth of 31.7% and 30.9%, respectively.
At the bottom of the rankings was the Malaysian capital of Kuala Lumpur, where values fell 5.7%. The two Italian cities of Venice and Genoa followed just behind, recording drops of 5.3% and 3.9%.