Global housing markets experienced modest growth in 2024, with rising inflation and high interest rates continuing to suppress real price gains across much of the world.
According to Knight Frank’s Global House Price Index – Q4 2024, average house prices increased by 2.6% year-over-year across 55 countries. While this reflects a slight improvement from previous quarters, it remains well below the long-term trend of 4.8% annual growth. Analysts expect further momentum to depend on interest rate cuts in 2025.
Inflation-Adjusted Prices Signal Real Decline
Despite nominal growth in many markets, real house prices (adjusted for inflation) have fallen by 3.6% since Q1 2022—marking the steepest two-year drop since the global financial crisis. Europe and North America have been especially impacted by persistent inflation and limited monetary easing.
Regional Highlights: Mixed Signals Worldwide
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Turkey recorded the strongest nominal growth at +29.4%, but real prices declined by 10.4% due to rampant inflation.
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Bulgaria, Poland, and Portugal topped European growth charts, each seeing double-digit annual increases.
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China and Hong Kong experienced significant price drops of over 8%, driven by economic uncertainty and weak buyer confidence.
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80% of markets globally still saw positive nominal growth, reflecting resilience despite economic headwinds.
Outlook: Rate Cuts Key to Recovery
With central banks expected to continue cutting rates into 2025, particularly in Europe and North America, Knight Frank forecasts a potential return to stronger price growth in the second half of the year.
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