Knight Frank's report on the state of housing markets worldwide shows exactly how hard Europe is getting pummeled.
South America has seen home prices rise by 9.8 percent, while prices in Asia Pacific have gone up 4.2 percent in the past 12 months. By contrast, home prices in the Eurozone's 17 member states have averaged a 1.8 percent decline over the same time period.
From the report:
With the Eurozone now in its second recession in three years buyer confidence is at an all-time low and it is no coincidence that all the bottom 12 rankings are occupied by European countries this quarter.
We've compiled Knight Frank's list of the housing markets experiencing the worst year-over-year declines, listed from smallest to largest decrease in home values.
Italy
Q3 2011 - Q2 2012:
-3.5 percent
6-month change:
-2.0 percent
3-month change:
-1.0 percent
Demand for expensive homes (over € 3 million) has remained strong. The value of prime property has dropped by about 20 percent since 2008.
Source: Knight Frank
Poland
Q3 2011 - Q2 2012:
-4.6 percent
6-month change:
-2.5 percent
3-month change:
-2.2 percent
Investment in commercial properties slowed in 1H 2012, though the vacancy rate rose to 9.3 percent as more projects reached completion. Approximately 425,000 sq. miles of new office space is expected to be added to Warsaw by year-end 2013.
Source: Knight Frank
Croatia
Q3 2011 - Q3 2012:
-5.2 percent
6-month change:
-3.3 percent
3-month change:
-1.9 percent
The mortgage market spiked from 4.7 to 18 percent of GDP from 2000 to 2010. Home prices are expected to fall 10 percent by year-end 2012.
Source: Knight Frank, Global Property Guide
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