Real estate company Knight Frank has released its predictions for the UK and global housing markets in 2012. There will be regional differences in house-price performance in the UK with the South East and London expected to do better than the North East.
The Knight Frank research team expects prime country-house prices in the UK, which fell by 1.7 per cent in the year to September, to decrease by 2.8 per cent in 2012. In prime locations in Central London prices have risen by more than 12 per cent in the past year alone, and Knight Frank expects rises of 5 per cent during 2012, with cumulative growth of 24 per cent by the end of 2016.
Demand for property in prime London locations in 2011 outpaced supply and this led to a strong price performance. Property prices in London grew by 12.1 per cent in 2011 and prices have risen more than 40 per cent since their post-credit-crunch low in 2009.
Areas such as Chelsea, Hyde Park, Kensington and St John’s Wood experienced strong price growth in 2011.
Liam Bailey, Knight Frank’s head of residential research, believes 2012 will be a year of prosperity and uncertainty in terms of house prices in different parts of the world.
“Growing global uncertainty and government intervention in the property market, especially in Asia, will weigh on prices in some areas. But some cities, such as Moscow and Bangkok, will shrug off these concerns to register growth of between 10 per cent and 20 per cent in 2012. Paris, Kiev and St Petersburg are all expected to rise by 5 per cent to 10 per cent, with London slotting in next, with a rise of 5 per cent.
“However, Shanghai, Mumbai, Manama (the capital of Bahrain), Hong Kong and Geneva are tipped to fall by between 10 and 20 per cent” he said.
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