India : number one of increasing price of property in the last decade According to a study by Lloyds TSB International identifying housing prices in 32 countries around the world, it is in India (284%) and Russia (209%) that the increase was the highest in a decade . These two countries respectively are positioned at the first place (14.4% per year) and the second place (12% per year) in the world ranking of countries with the highest increase in their real estate prices since 2001. Nations with strong economic growth attend a rise in the value of their housing stock. They gradually rose to the top of the list of real estate markets that record increases most notable, well ahead of euro zone countries. Actually, in India, the boom in real estate prices is at its peak.
At the other end of the scale, the largest declines were experienced by the world's largest economies. Indeed, of the 31 countries tracked by Lloyds TSB, only six have decreased the prices of their housing units in the last decade, three of which are part of the G8. This is Japan, Germany and the United States. The Japanese real estate has even been a real collapse with a drop of nearly 30% over ten years. Ireland is not left with a decrease of 23%, while German homes have lost 17% of their value over the same period.
"The growth of housing prices is parallel to the economic growth of emerging countries," said Suren Thiru, economist at Lloyds TSB* interviewed by LaVieImmo.com. Therefore, when a country sees its economy plummet, property prices follow inexorably decline.
*The Lloyds TSB International Global Housing Market Review
Evolution of house prices inflation adjusted over the period 2001 - 2011