The Global House Price Index regularly analyzes housing prices in 56 countries around the world, taking into account local currency and not adjusting for inflation. We tell you where housing is becoming more expensive at the fastest rate.

According to the research, there has been a significant slowdown in the growth of real estate prices since 2015. In the first quarter of 2023, the average increase in the cost of housing was 3.6%, while in the fourth quarter of 2022, this figure was 5.7%.

The top 5 countries with the fastest appreciating housing prices are:

  • Turkey: +132.8%
  • Northern Macedonia: +18.8%
  • Croatia: +17.3%
  • Hungary: +16.6%
  • Lithuania: +15.3%

Turkey's real estate market remains in first place in the ranking, repeating last year's results. The astonishing 132.8% is largely a consequence of inflation. A quarterly price increase of 22% indicates that the country will probably reach even higher values by the end of 2023.

Eastern and Southeastern European countries dominate the ranking, with North Macedonia (18.8%), Croatia (17.3%), and Hungary (16.6%) all posting high annual growth rates.

“It is already difficult to find something for less than €100,000 in Alanya.” Expert on the current agenda and the future of the Turkish market 

Other regions

In the Asia-Pacific region, Singapore led the way with an annualized growth rate of 11.3%, a figure that places it in tenth place in the rankings.

U.S. home prices rose just 1% in the first quarter, and the country ranked only 39th due to limited housing supply.

The Pacific countries with the lowest values in the ranking are South Korea (-15.7%), New Zealand (-13%) and Hong Kong (-10.3%).

Experts' conclusions

The slowdown in market growth is due to several factors: limited housing supply, a slow pace of new construction, and social changes affecting the structure of households. 

High inflation in the US, UK, and Europe will lead to continued high mortgage rates until at least the second half of 2024, which in turn could reduce transaction volumes and market liquidity for more than 12 months.