Cities with highest growth rate in home price in 2016

In a report published last year, the well-renowned real estate agency “Knight Frank” has list 10 cities with the highest growth rate in home price during the period between 2015 and 2016.

In its pursuit to develop this list, Knight Frank analyzed bulks of data retrieved from the 10 cities scattered across 4 different continents. It’s worth mentioning that all included cities have seen growth rate exceeding 15% in home price.

We will list the cities here in ascending order from the lowest rate to the highest rate.

• Lucknow

The capital city of Uttar Pradesh state, Lucknow is a large city in northern India with a population of 3 million residents.

Over the course of the last ten years, Lucknow, or “Luck Now” became the home of many industries like leather, electronics, vehicles, and telecommunications.

Last year, the Japanese giant of car production “Honda” has opened a plant in the city.

The home price growth rate in the city hit 16.1% due to the increasing volume of real estate and industrial investments.

About 50% of the city’s inhabitants live in one-storey houses, which contributes also to pushing the home prices to this extent.

• Izmir

It’s the second biggest city in Turkey and a hotspot drawing beach-lovers and visitors from all around the globe.

As a result of the flourishing tourism activity in the city which encouraged the erection of many new hotels and seaside resorts, home prices surged by 16.7% only last year.

Despite its hiking prices, Izmir homes are still cheaper than their counterparts in Istanbul, Ankara, and Anatolia.

• Auckland

It’s ironic that the only listed city in the Australian continent isn’t in Australia, but New Zealand.

Auckland has seen a massive growth in its urban proportions during the last ten years thanks to the inflowing Chinese and Asian investments. Prices of homes lying in the city’s boundaries rose by 16.9%.

Auckland is awaited to see even higher growth in prices thanks to the facilities provided by the government to all investors.

• Vancouver

The promising Canadian city is also making a huge benefit from the Asian real estate investments as prices surged there by 17.3%.

Chinese investors play a pivotal role in this momentum. The volume of Chinese property purchases reached 9.6 million dollars covering about 33% of the whole real estate transactions.

• Stockholm

The Swedish capital had an unprecedented leap in property prices last year of 17.4%.

However, Stockholm is a special condition. The price rise isn’t attributed to the increasing investments or the rising demand, but instead to the low-interest rate of real estate mortgages and the imbalance between supply and demand.

• Beijing

The first Chinese city in our list. Beijing is the growth engine where most economic and financial decrees in China are made.

Home prices in Beijing rose by 17.6% last year.

This scale of growth urged the Chinese government to impose some restrictions on the market in attempt to restrain the price wildness.

• Nanjing

Being a crucial trade center in China where the world’s biggest inland port is located, Nanjing grabs investors’ sights from all around the world.

The city’s advantageous credit cost has encouraged also many property investors to purchase which added to the real estate momentum pushing property prices to rise by 17.8% last year.

• Istanbul

The second Turkish city in this list. Despite the political tensions which blighted the city last year, prices remained resilient and prices increased by 19.6%.

Many Arab investors seek to exploit the perks of Turkish real estate market by buying in any of its hotspots.

From its side, the Turkish government provides makes it very easy for foreign investors to purchase on its land in order to spur real estate growth in the historic city.

• Shanghai

In one year, Shanghai home prices jumped by 30.5% and it’s expected to hit even higher rates in the near future as more investors are flocking to the city to take advantage of its high capital appreciation.

• Shenzhen

You probably won’t believe this, but as attributed to Knight Frank statistics, the home price growth rate in Shenzhen was 62.5% last year.

The city is alive with various industries including electronic parts, computers, and many other, that’s why its real estate market is seeing high demand and ultimately high price growth rate.