Global financial crisis continues to affect European property prices

andres del risco

The fallout from the global banking crisis continues to affect the property market with seemingly no country in Europe left truly untouched.

As might be expected, the crisis in the Euro zone has hit certain countries particularly hard when it comes to sales values. Overall, the 17 member states have, on average, seen prices fall by 1.8% in the 12 months up to September.

As would perhaps also be expected, Greece is bottom of the league having seen a decrease in sales prices of 11.7% in the year to September.

Having held this position for the previous five consecutive quarters, Ireland has recently seen its own rate of decline improve from minus 14.3% a year ago to minus 9.6%.

Whilst low prices are often a sign that there are investment opportunities, a situation in which decreases show no sign of stalling present a more challenging scenario for prospective buyers.

However, elsewhere in the world things are taking on a distinctly different flavour with six markets showing double digit price growth for those fortunate enough to have made investments in them already.

The economies of Brazil, Hong Kong and Russia are perhaps obvious markets for growth, but Turkey, Columbia and Austria joined them in terms of percentage increases in market prices.

Brazil was the location for the highest annual increase in prices, which were up 15.2%, and further north house prices in the USA are 3.6% higher than in the third quarter of last year.

In Asia and the Pacific growth is slowing, dropping from 7.6% in the previous 12 months to a new level of 4.2% in the year to September.

The continuation of China's tight property controls makes it unlikely that a foreign investment boom will take place there anytime soon.

Wherever in the world you might consider making a foreign exchange, for a property purchase or for any other reason, you can always maximise yields by using specialist foreign exchange firms.

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Global financial crisis continues to affect European property prices

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