Real Estate Bubble? Not In Spain

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According to a report by the Bank for International Settlements, global real house prices increased by 4.6% year on year in aggregate in the first quarter of 2022. This strong growth in real terms reflected a surge (+11.2%) in nominal terms – the first double-digit one recorded since the eve of the Great Financial Crisis – partly offset by the acceleration in consumer price indices.

Real house price developments continued to diverge between advanced economies (AEs, +8.5% year on year) and emerging market economies (EMEs, +1.6 %).

Real house prices surged in Turkey (by around 35%), Canada (20%), Australia(14%) and the United States ( 12%). They fell by 3– 4% in Brazil and India.

In real terms, global house prices now exceed their immediate post-G FC average levels by 29%. They have been up by 41% in the AEs and by 19% in the EMEs.

In aggregate for the group of AEs, real residential property prices grew by 8.5% in Q1 2022, up from 7.8% in the last quarter of 2021. Prices rose in double-digit rates in Canada (+18%), Australia (+14%) and the United States (+12 %), reflecting marked nominal price growth (20–25%). They increased somewhat less vigorously in Japan(+8%) and the United Kingdom (+3%). Prices were up by 3% in the euro area, where developments continued to vary significantly among member states. Strong real house price growth persisted in the Netherlands (+11%), Portugal (+8%) and Germany (+6%). Real prices grew less rapidly in France (+3%), and remained roughly flat in Spain (+1%) and Italy (–1%)

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.