Bulgaria Boasts Highest Real Estate Price Growth Globally in Q2

Bulgaria retained its number one spot in the Knight Frank Global House Price Index with a 32.3-percent year on year growth in real estate property prices in the second quarter of 2008. Real estate property prices in the country marked a 32.3% year on year increase in the first quarter of the year. Global house price inflation continues to slow, with annual growth standing at 4.8% in the second quarter of 2008, down from 6.1% in the previous quarter, Knight Frank data show. Prices are now falling in almost half the markets listed in the Knight Frank Global House Price Index. Nevertheless growth rates in double figures are still being recorded in eight markets - Bulgaria, Slovakia, Russia, the Czech Republic, Hong Kong, Singapore, Cyprus and Colombia. The economies of central and south-eastern Europe appear to be the strongest performers, while northern Europe (including the Baltic States), together with the United States, are suffering the most. The Knight Frank Global House Price Index shows that global house price inflation is continuing to fall back, with much of continental Europe now seeing low or negative growth, according to Nick Barnes head of international research at Knight Frank. Bulgaria is at the head of this list, where values have grown at 32.3% over the past year, and have now risen by 68% over the past two years. Admittedly this occurred from a low base, but demand from international investors and domestic economic growth remain strong, although there are fears of oversupply, particularly in the resort locations. Strong performance in Slovakia and the Czech Republic is also driven by robust economic growth. The rapidly depreciating housing markets of the Baltic States – led by Latvia, where prices fell by 24.1% over the past year, demonstrate that rising inflation and mortgage costs are real risks for the emerging economies of Europe. However, housing markets in countries such as Spain, Denmark, the UK and Ireland are all being severely challenged by the global credit squeeze. Country Y/Y % change in Q2 Y/Y % change in Q1 Rank Q2 2007 Bulgaria 32,2 27,1 3 Slovakia 31,2 20,5 5 Russia 26,5 53,7 1 Czech Republic 25,4 20,5 5 Hong Kong 25,1 - - Singapore 16,3 25,2 4 Cyprus 12,9 8 20 Colombia 12,5 12,8 10 Iceland 9,6 9,6 17 China 9,2 7,1 22 Australia 9 10,1 16 Belgium 6,9 11 12 Croatia 5,8 6,9 24 Austria 5,4 7,7 21 Italy 5,4 5,4 28 Canada 4,8 9,1 18 Indonesia 4,4 7 23 Sweden 4,3 10,3 14 Serbia 3,8 0,2 36 South Africa 3,8 15,5 7 France 3,2 6,8 25 Finland 2,8 6,5 26 Spain 2,4 5,8 27 Malaysia 2,2 11 12 Greece 1,7 4,2 29 Източник: Profit.bg