Brazil and South Africa are set to enjoy the highest rises in house prices in 2014, according to a survey of 16 countries from leading ratings agency, Fitch. The Global Housing and Mortgage Outlook predicted that the two countries will see nominal property prices increase by 6% year-on-year by the end of 2014. This is followed by a 5% increase in the UK, 4% in Australia, 3% in Germany and Ireland and 2% in the United States. The report puts Brazil’s property growth down to a shortage in housing supply and an increase in real salaries in the country.
Meanwhile, prices are expected to fall in the Netherlands, France and the troubled southern European economies with values set to decline 3% in France and Italy, 5% in the Netherlands and 6% in Greece, whilst flat lining in Portugal. The greatest fall in prices is set to come in Spain where a property overhang of one million homes is expected to result in an 8% depreciation, despite government attempts to stem the tide by introducing a ‘Golden Visa’ offering residency to foreigners investing over €500,000.
The report adds that the bulk of any increase in global prices will come in the first part of 2014 as rising interest rates will lead to slower growth by the end of the year.
To find out more about the Fitch report, visit the agency website at www.fitchratings.com/
See more at: http://www.ecohousegroup.com/