The Turkish cities of Ankara, Izmir and Istanbul have experienced runaway house price growth of 30.2%, 29.4% and 27.9% respectively, more than any other city in the world.
The Knight Frank Global Residential Cities House Price Index found that the gap between city house price growth has widened across the globe.
Cities in emerging markets like Turkey and Russia are seeing very strong growth – as St Peterburg prices increases by 25.4% and Moscow prices inflated by 21.1%.
However activity is more sluggish in parts of Asia.
India dominates the list of countries where prices have fallen, as six of the bottom eight cities for house price growth were in the country.
Prices in India’s Chennai have slipped by 9.0% year-on-year, followed by Dubai in the United Arab Emirates (-7.1%) and then India’s Pune (-5.3%).
Property price inflation has been maintained in a number of North American, Australasian and European cities, though Spanish and Italian cities are averaging annual growth of -1.5% and 0.6% respectively.
Knight Frank said future house price movements across the globe depend on multiple factors, including the speed of the vaccine roll-out, the impact of third lockdowns in major European markets and the tapering of fiscal stimulus measures leaving jobs and mortgages more exposed, potentially dampening buyer sentiment in the second half of 2021.