Latin American Housing Prices Soar: Colombia And Mexico Lead The Charge

10/4/2024 6:25:12 AM

(MENAFN- The Rio Times) The Latin American housing market is experiencing a significant uptick, with Colombia and Mexico at the forefront of this trend.

Knight Frank's Global House Price index reveals a 3.3% increase in housing prices across 56 countries over the past year.

Colombia ranks sixth globally, boasting a 10.9% annual price growth, while Mexico follows closely in eighth place with a 9.4% increase.

This surge comes as interest rates begin to fall and inflation pressures persist in the region. The global housing market has shown signs of strengthening, with 74% of markets recording price increases in the last quarter.

This figure represents the highest percentage in two years, indicating a robust recovery from the pandemic-induced slowdown. Liam Bailey, Knight Frank's Global Head of Research, attributes this growth to interest rate cuts.

He notes that while central banks' actions will limit the pace of price increases, government interventions are becoming more common. Regulators are actively working to improve market access and boost housing construction volumes.

Brazil also features prominently in the index, securing the 19th position with a 6.2% price increase. Peru and Chile follow suit, ranking 34th and 45th, respectively.

Peru saw a modest 2.3% rise, while Chile experienced a slight decline of 0.7%. The construction sector has faced challenges since the pandemic, grappling with weakened household finances and high inflation.

However, some countries are now showing signs of recovery. In Colombia , new home sales reached 12,653 units in August, marking a 5.68% increase from the previous year.

Globally, Turkey leads the pack with a staggering 46.4% price increase, followed by Poland at 18% and Bulgaria at 15.1%.

On the other end of the spectrum, Hong Kong saw the steepest decline at -12.7%, with Luxembourg and Jersey also experiencing significant drops.

This trend in Latin America reflects a broader global pattern of rising housing prices. As economies recover from the pandemic and monetary policies adjust, the real estate market is responding with increased vigor.

The situation presents both opportunities and challenges for the region's housing sector and overall economic landscape.
Top 20 Countries with Highest Nominal Year-over-Year House Price Growth
1. Türkiye: 167.9%
2. Serbia: 23.1%
3. Russia: 23.1%
4. North Macedonia: 20.6%
5. Iceland: 20.3%
6. Croatia: 17.3%
7. Estonia: 16.9%
8. Israel: 16.8%
9. Hungary: 16.5%
10. Lithuania: 16.0%
11. Slovenia: 15.4%
12. Bulgaria: 13.4%
13. Greece: 12.2%
14. Portugal: 11.3%
15. United Kingdom: 10.0%
16. Slovak Republic: 9.7%
17. United Arab Emirates: 9.6%
18. Poland: 9.3%
19. Latvia: 9.1%
20. Singapore: 8.6%

At the other end of the spectrum, some countries experienced price decreases:

China: -3.7%
Canada: -3.8%
New Zealand: -10.4%
Hong Kong SAR: -13.5%

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