After years in the top ten of the "Global Property Guide" rankings, Israel's ranking fell to 27th place out of 36 markets in the first quarter of 2012. The magazine's quarterly review of changes in property prices shows that home prices in Israel fell 3.2% in the first quarter in nominal terms compared with the corresponding quarter of 2011, and fell 0.6% compared with the preceding quarter. Property prices in inflation-adjusted terms were 4.9% lower in the first quarter than in the corresponding quarter.
"Global Property Guide" entitles its paragraph on Israel, "Israeli house prices weakening". It says, "Prices were hit by worldwide uncertainty, plus measures taken by the Israeli government and the Bank of Israel. The fall comes amid popular protests since last summer over high prices, which have not yet waned."
Delhi, India, tops "Global Property Guide's" rankings for the first quarter, with a 33.3% jump in home prices, in nominal terms, compared with the corresponding quarter. Sao Paulo, Brazil, is in second place, with a 25.4% jump. Prices in the US, UK, and Shanghai, China, were stable. Ireland is in last place, with a 17.2% drop in home prices over the preceding year, and Athens, Greece, with a 9.9% drop, is in the penultimate place.
"Global Property Guide" says, "During the latest quarter the downturn appears to have accelerated, with house price falls in 26 countries, and house price gains in only 10." The economic conditions in Europe are affecting many residential property markets, with Ireland, Greece (Athens), Portugal, Poland (Warsaw), and Spain, ranked at the bottom, with home prices down 7-17% in nominal terms in the first quarter compared with the corresponding quarter. However, Estonia and Austria continued to shine in the global rankings, with home prices up 13.9% and 11%, respectively.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2012
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