House Prices – Rise and Fall

Although generally, house prices are on the rise globally, there are plenty of countries where the prices continue to fall, giving investors room for manoeuvre.

KnightFrank research company has published its annual property price report.

The top 3 countries are shooting up violently because of the unstoppable urbanization. People are quickly moving from the rural regions into the huge towns adding to the overpopulation and overpricing.

Much of Europe is on a steady rise. Recession? What recession? Our dear England? No comments on that one – for the size and quality probably the most overpriced houses in the whole wide world… and continuing to rise 🙁

As far as the investors are concerned, the red part of the table looks pretty much impressive. My personal favourites: France, Russia and Estonia. If the location is right, France will always be a good buy in the long run. With Russia, its really the time to move in. Last year, despite of the slump in the country’s economy, they’ve built over 140,000 new flats around Moscow. Due to that, the prices will probably continue to fall for some time but after the economy has recovered, Moscow will soon establish itself back in the list of the most expensive cities in the world.

As for Estonia. The property prices are so low that you simply cannot get it wrong. Especially with all those shiploads of Scandinavian tourists coming to Estonia every year. The prices are so ridiculous that you can get a decent flat in the region of £10,000 to £40,000. A huge 15-room manor house with outbuildings – just £107,000.

You can see the complete report here.