Russia bucks global real estate trend
House prices globally have fallen by 2%, marking the first decline in 12 years
Russian house prices grew by nearly 10% in the last quarter of 2022 compared to the same period last year, according to data from the Bank for International Settlements (BIS) released by Visual Capitalist.
In real terms, taking inflation into account, property prices in Russia rose by 9.7%. It was the fourth-highest increase globally after Türkiye, Israel and Iceland, which saw prices rise by 51%, 11% and 9.9%, respectively.
Globally, real estate prices dropped by 2% during the same period, marking the first decline in 12 years. In China, India and Canada, property prices fell by 5.4%, 3.1% and 9.8%, respectively.
The dataset from the BIS covered nominal and real house price growth across 58 countries and regions as of the fourth quarter of 2022. Despite a surge in interest rates and mortgage costs, housing markets were noticeably stable. Real prices remain 7% above pre-pandemic levels.
Prices for residential property soared during the Covid-19 pandemic as regulators across the world slashed interest rates, which have a significant impact on home prices, to buoy struggling economies. Key rates have fallen to levels last seen before the Global Financial Crisis.
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According to the BIS data, rates have increased by an average of four percentage points in many major economies with three-quarters of the nations surveyed reporting negative year-on-year growth in housing prices as of the fourth quarter of 2022.
Separately, Russian business daily RBC reported that the highest prices for residential property in the country were recorded in Moscow, St. Petersburg, Sakhalin Region and Primorsky Krai. However, Moscow and St. Petersburg saw a year-on-year drop in property prices by 2.5% and 2%, respectively.
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