In Tenerife and around the globe, property prices are beginning to increase once more.
Residential property prices across the globe are starting to recover from the downturn and even in countries such as Spain and the Canary Islands where there were sharp falls at the beginning of the year the decline is slowing.
The latest Global House Price Index from international property consultants Knight Frank shows that there are the first tentative signs of recovery in 33 key locations that were examined for the report. It now appears that house prices are starting to stabilise across the world, including Tenerife.
The latest results from our Global House Price Index show values increased in almost half of the locations reporting price changes for the second quarter of the year,’ explained the head of residential research at Knight Frank. Quarterly price falls accelerated in only 22% of the locations and did not exceed 10% in any country. This compares with double-digit falls in a number of locations during the first quarter.
Dubai was worst with prices falling 47%, but slowing in the second quarter of the year to a more manageable 7.5%. There has also been a sharp slow down in the number of houses under construction. Even the US, where the sub-prime mortgage crisis started, is starting to see a recovery. Prices increased 1.3% in the second quarter following falls of 7% in each of the previous two quarters, the report also shows. Even in Dubai the recovery looks underway. Prices are still falling in Dubai, but the decline has slowed sharply.
The report concludes that overall, it seems that prices are starting to bottom out around the world. However, the market is still fragile and patchy. One quarter of recovery is no guarantee prices will continue to increase, but for those with cash available it may well be the right time to buy in Tenerife once again whilst prices remain fairly cheap.
