Budapest shows the third highest 12-month residential property price growth in the world according to the ‘Global Residential Cities Index’ report by property services company Knight Frank.
Of the 150 cities tracked around the world, 123 (82 percent) reported an increase in residential prices over the 12-month period. The Hungarian capital reported a residential price growth of 19 percent, ranking third behind Xiʼan (China) and Ahmedabad (India). According to the report, a mix of economic stagnation, high rates of new supply and affordability constraints have contributed to the softening prices in a number of urban markets.
Besides Budapest, only three other European cities made the top ten: Porto (16,6 percent), Rotterdam (15,7 percent) and Amsterdam (13,1 percent). At the other end of the scale, residential prices dropped by 13,2 percent in Turin and 7,4 percent in Stockholm. In neighboring countries, residential prices also rose 11,5 percent in Zagreb and 5,6 percent in Bucharest.
On average, prices across cities in the Asia Pacific increased 6,2 percent over the 12-months, up from just 3,3 percent a year ago. Of the remaining world regions, only Latin America and Russia have seen price growth accelerate. All others, including Europe and North America, have registered slower growth.