Property prices in Latvia, Bulgaria and Denmark rose faster than anywhere else in the world in the third quarter of 2006, according to a survey by British estate agency Knight Frank. The global index, compiled by the realtor, looks at property markets in 32 countries. It shows global property price inflation running at 8.4 % in the twelve months up to September 2006, the Bulgaria in EU Press Center has reported.
Property prices in Latvia, Bulgaria and Denmark rose faster than anywhere else in the world in the third quarter of 2006, according to a survey by British estate agency Knight Frank. The global index, compiled by the realtor, looks at property markets in 32 countries. It shows global property price inflation running at 8.4 % in the twelve months up to September 2006, the Bulgaria in EU Press Center has reported.
In Bulgaria growth was buoyant and helped maintain house price inflation at 19 %. In Denmark it stood at 17.8 %. The biggest movement up the global property market table was by Norway (up 12 places), followed by Australia (up ten places) and the UK (up nine places).
'The general picture remains a slowing of growth across the board, especially in the previously incredibly hot locations in the recent EU eastern European accession states", Liam Bailey, head of Knight Frank residential research, was reported as saying by the Bulgaria in EU Press Center. 'A levelling up is affecting almost all the markets in the former eastern bloc - especially those which have joined the EU in recent years.'
Bailey said wage inflation, growing prosperity and access to less constrained mortgage finance have all contributed to rapidly rising prices. The same process has been experienced in Bulgaria where domestic demand has been complemented by international second home demand.
'Denmark has seen prices benefit from a low but growing proportion of owner-occupation, full transparency of ownership for overseas investors and a low and stable inflation and interest rate environment. The general trend is that global residential markets continue to experience slowing but positive growth in spite of concern about increasing affordability issues, mounting household debt and market sustainability,' Bailey said.
At the bottom end of the table, house prices in Hong Kong, the US and Italy dropped the most places, with the German housing market taking last place, with prices down three per cent from July to September 2006.
* for more Bulgarian news from the Bulgaria in EU Press Center, go to www.eunews.bg/.
