The Latin American housing market is on the rise, with Colombia and Mexico leading the charge. Knight Frank’s Global House Price Index shows a 3.3% increase in housing prices across 56 countries over the past year. Colombia ranks sixth globally with a 10.9% annual price growth, followed by Mexico in eighth place with a 9.4% increase.
The surge in prices is attributed to falling interest rates and persistent inflation pressures in the region. The global market is strengthening, with 74% of markets recording price increases in the last quarter – the highest in two years. Liam Bailey, Knight Frank’s Global Head of Research, credits interest rate cuts for the growth.
Government interventions are increasing to control price increases, while efforts are being made to improve market access and increase housing construction volumes. Brazil, Peru, and Chile also feature in the index, with varying price increases and declines. Colombia saw a 5.68% increase in new home sales, marking signs of recovery.
Globally, Turkey, Poland, and Bulgaria lead in price growth, while Hong Kong, Luxembourg, and Jersey saw declines. This trend reflects a broader global pattern of rising housing prices as economies recover and real estate markets respond with increased vigor, posing both opportunities and challenges for the housing sector and the overall economic landscape.