2024-03-09 23:07:04
Housing prices around the world decreased by 2 percent in the third quarter of 2023. This is evidenced by data from the Bank for International Settlements (ICB), Day.Az reports with reference to Lenta.ru.
The bank’s analysts estimate the rate of price growth adjusted for inflation, which, according to the IMF, last year amounted to 6.9 percent. Residential real estate as a whole in the world has continued to fall in price for five consecutive quarters since the third quarter of 2022. This is the first drop in prices since 2011, and such a long period of price decline was observed almost 15 years ago, during the economic crisis of 2008.
Most noticeably in the third quarter of last year, housing prices fell in the European market – in Luxembourg (minus 17 percent), Germany (minus 15 percent), Finland and Slovakia (minus 12 percent), as well as in the Czech Republic (minus 11 percent). The leaders in price growth were Turkey (plus 21 percent), the UAE (plus 17 percent) and Greece (plus 9.4 percent). Russia was in 25th place in terms of the rate of decline in residential real estate prices; they grew by 3.2 percent less than general inflation.
According to the head of the analytical department of the BKF bank, Maxim Osadchy, global price dynamics are primarily related to the situation in the housing market in China, where huge volumes of residential real estate have not been sold and its value is falling. At the same time, it is premature to talk about a global crisis in this industry, he added.
Stock market expert at BCS World of Investments Lyudmila Rokotyanskaya also believes that the current situation is not similar to 2008. She recalled that at that time the crisis occurred not so much because of the fall in real estate prices, but because of the issuance by American banks of mortgage-backed securities backed by low-quality housing loans.