The global residential real estate market has weakened further as research reveals that prices fell or slid in half of all countries in the first three months of 2011 and the slowdown is expected to continue.
Prices in 25 of the 50 countries included in the index remained flat or saw negative growth in the first three months of 2011, compared to only 18 countries a year earlier.
In regional terms, Asia remains the top performing continent, recording 8.4% growth over the last 12 months. However, this is down from 17.8% a year earlier. The weakest region was North America.
The strongest performing countries were: Hong Kong, up 24.2%, where the government is fighting to pull inflationary pressures under control; India up 21.9%, and Taiwan, up 14.3%.
There were some predictable results, like house prices in Russia, fell 13.7% in the first three months of this year positioning it below Ireland in the rankings. On the other hand, France has jumped to sixth place in the rankings, up from 30th a year earlier. Sweden and Germany, by comparison, have experienced several quarters of positive growth only to fall back in the first quarter of 2011. In most of these cases, with the notable exception of Germany, the housing market is reflecting the wider economy’s performance as well as responding to domestic policy decisions.
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