Despite the fact that the decline in prices is slowing down and the recovery that began slowly in some countries as the end of the year is nearing, the global real estate market continues to feel the effects of recession and the financial crisis.
Unlike the situation at the end of 2008 and early 2009 when prices around the world fell to historically low levels, the recovery of markets and prices in the second half of 2009 started in several countries. However, it should be noted that the world property market is still dealing with a lot of big problems. Data from many countries proves this.
The first signs of recovery can be seen in China, Portugal, Australia, New Zealand, France, Sweden, Hong Kong, Israel, Switzerland, Indonesia and Norway.
In Portugal the prices increased slightly more than 1 percent. Government subsidies, which are announced in Croatia, are the reason for growth in France, which is slightly higher than 3 percent. A similar percentage can be seen in Sweden. Swiss market opposes crisis since the end of 2008 and prices have risen nearly 5 percent in the first half of this year. Similar situation can be seen in Norway, which also shows a constant increase in prices in 2009. In other European countries a further fall in prices was recorded, ranging from small 1.75 percent in Germany to almost 10 percent in Bulgaria. The biggest drop of more than 26 percent was recorded in Riga, the capital of Latvia. Real estate market in this country is one of the hardest hit by the crisis, with a drop of more than 60 percent this year.
In the U.S. market there was a slower decline, which is quite good if we take into consideration that the United States is where the crisis started. In the second quarter decline was about 14 percent, which is about 4 percent less than the decrease of 18 percent from the first quarter. As for the rest of the world, quite a large drop of almost 50 percent was recorded in Dubai, but we also saw a slower decline in the second quarter there too.
Unlike the rest of Europe and the world, the crisis and the price drop in Croatia were not so drastic, but it is a small and rather open economy, so it is important to follow the events on the international markets.