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Even as the value of residential real estate around the developed world continued its multi-year plunge in the second quarter, some countries bucked the trend. In seven national markets, housing values rose by more than 5% in the second quarter compared to the second quarter of 2010.In two countries, prices rose nearly 20%. 24/7 Wall St. has identified the countries where real estate values are soaring.
These countries have several financial and economic factors in common.
Each had relatively rapid GDP growth in 2010. Each is a medium-sized economy based on GDP.
Most have highly literate populations and are substantial exporters. They have, in other words, the foundations of economic strength in a period of global weakness.
In its analysis, 24/7 Wall St. looked at data from the Global Property Guide for second quarter real estate values around the world.
According to the data, values in the U.S. dropped by 9.05% in the period. Predictably, Greece, Spain, Ireland, and Portugal are the other nations with deep housing value problems.
In Greece, property values fell 9.9% in the second quarter of this year from the second quarter of 2010. That drop was 15% in Ireland.
Each of these European nations has deep deficit problems and has instituted austerity packages, which have tended to hurt growth and employment. Also, each is in the process of being financially bailed out by other nations in the EU.
In addition to the inflation adjusted data from the Global Property Guide for the 39 countries, 24/7 Wall St. added GDP and GDP growth rates from the CIA Factbook. GDP rank is out of 190 countries.