Global House Prices on the Rise: A Two-Year Forecast
Global house prices are set for an upward trajectory over the next two years, driven by imbalanced supply and demand in various countries, according to a report by Fitch Ratings. Read more about the report here. This trend is echoed by data from the IndexBox platform, which highlights similar dynamics in the real estate market, noting particularly strong price growth in the Netherlands, Canada, Brazil, and Mexico.
Fitch Ratings forecasts nominal home prices will rise in the low to mid-single digits for most countries each of the following two years. The sharpest increases are anticipated in the Netherlands, where prices could rise between 8% and 10% in 2025, before slowing to 6% to 8% by 2026. The Netherlands' government programs to aid first-time buyers and limited housing supply have fostered this increase.
Meanwhile, Canada is expected to experience robust home price growth due to similar governmental support measures, while economic conditions point to rising construction costs driving up home prices in Brazil and Mexico. Conversely, China's slowing economy is predicted to suppress house prices, aligning with trends observed by both IndexBox and Fitch.
In the eurozone, increasing real household income is fueling demand, boosting prices in most member states except France, where political uncertainty and strained affordability are expected to cause a decrease in house prices. Fitch speculates that this decline may slow compared to the previous year, with potential price increases starting in 2026.
Within Germany and Spain, housing markets are poised for growth. Spain is projected to see a 4% to 6% price increase in 2025, accelerating to 5% to 7% by 2026, driven by improving consumer confidence and insufficient new housing stock. Germany anticipates home price growth between 2% and 4% for both 2025 and 2026, stemming from a stronger rental market despite tempered wage growth.
House prices in the UK, supported by falling mortgage rates and a robust labor market, are predicted to edge upwards by 2% to 4% in 2025 and 2026. Similarly, Denmark anticipates a corresponding price increase due to lower interest rates enhancing disposable incomes.
Conversely, Italy's housing market is projected to grow modestly, with prices rising between 0.5% and 2.5% during 2025 and 2026, due to high mortgage rates and reduced new housing supply. Mortgage rates are expected to slightly decline to 2.5% over the next two years but will remain higher than pre-2022 levels, according to Fitch.
Overall, global housing supply continues to lag behind demand, exacerbated by high land, labor, and material costs, as well as restrictive borrowing for smaller builders. The IndexBox platform agrees with this assessment, suggesting that decreasing interest rates, stable unemployment, and rising household incomes will maintain demand across many regions.
Additionally, climate change considerations and EU regulations on sustainable construction practices could further influence housing costs and demand for energy-efficient homes, often resulting in favorable lending terms based on Energy Performance Certificate categories.
The report concludes that economic conditions surpassing expectations could spur even faster house price growth, while adverse fiscal circumstances might see a reverse trend, underscoring a volatile yet promising real estate market in the coming years.
-
1. INTRODUCTION
Making Data-Driven Decisions to Grow Your Business
- REPORT DESCRIPTION
- RESEARCH METHODOLOGY AND AI PLATFORM
- DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
- GLOSSARY AND SPECIFIC TERMS
-
2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
- KEY FINDINGS
- MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO
-
3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
- MARKET SIZE
- CONSUMPTION BY COUNTRY
- MARKET FORECAST TO 2030
-
4. MOST PROMISING PRODUCT
Finding New Products to Diversify Your Business
This Chapter is Available Only for the Professional Edition PRO- TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
- BEST-SELLING PRODUCTS
- MOST CONSUMED PRODUCT
- MOST TRADED PRODUCT
- MOST PROFITABLE PRODUCT FOR EXPORT
-
5. MOST PROMISING SUPPLYING COUNTRIES
Choosing the Best Countries to Establish Your Sustainable Supply Chain
This Chapter is Available Only for the Professional Edition PRO- TOP COUNTRIES TO SOURCE YOUR PRODUCT
- TOP PRODUCING COUNTRIES
- TOP EXPORTING COUNTRIES
- LOW-COST EXPORTING COUNTRIES
-
6. MOST PROMISING OVERSEAS MARKETS
Choosing the Best Countries to Boost Your Exports
This Chapter is Available Only for the Professional Edition PRO- TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
- TOP CONSUMING MARKETS
- UNSATURATED MARKETS
- TOP IMPORTING MARKETS
- MOST PROFITABLE MARKETS
7. GLOBAL PRODUCTION
The Latest Trends and Insights into The Industry
- PRODUCTION VOLUME AND VALUE
- PRODUCTION BY COUNTRY
8. GLOBAL IMPORTS
The Largest Importers on The Market and How They Succeed
- IMPORTS FROM 2012–2024
- IMPORTS BY COUNTRY
- IMPORT PRICES BY COUNTRY
9. GLOBAL EXPORTS
The Largest Exporters on The Market and How They Succeed
- EXPORTS FROM 2012–2024
- EXPORTS BY COUNTRY
- EXPORT PRICES BY COUNTRY
-
10. PROFILES OF MAJOR PRODUCERS
The Largest Producers on The Market and Their Profiles
This Chapter is Available Only for the Professional Edition PRO -
11. COUNTRY PROFILES
The Largest Markets And Their Profiles
This Chapter is Available Only for the Professional Edition PRO- United States
- China
- Japan
- Germany
- United Kingdom
- France
- Brazil
- Italy
- Russian Federation
- India
- Canada
- Australia
- Republic of Korea
- Spain
- Mexico
- Indonesia
- Netherlands
- Turkey
- Saudi Arabia
- Switzerland
- Sweden
- Nigeria
- Poland
- Belgium
- Argentina
- Norway
- Austria
- Thailand
- United Arab Emirates
- Colombia
- Denmark
- South Africa
- Malaysia
- Israel
- Singapore
- Egypt
- Philippines
- Finland
- Chile
- Ireland
- Pakistan
- Greece
- Portugal
- Kazakhstan
- Algeria
- Czech Republic
- Qatar
- Peru
- Romania
- Vietnam
-
LIST OF TABLES
- Key Findings In 2024
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Per Capita Consumption, By Country, 2018–2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country Of Destination, 2012–2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, By Country Of Origin, 2012–2024
-
LIST OF FIGURES
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Consumption, By Country, 2024
- Market Volume Forecast to 2030
- Market Value Forecast to 2030
- Products: Market Size And Growth, By Type
- Products: Average Per Capita Consumption, By Type
- Products: Exports And Growth, By Type
- Products: Export Prices And Growth, By Type
- Production Volume And Growth
- Exports And Growth
- Export Prices And Growth
- Market Size And Growth
- Per Capita Consumption
- Imports And Growth
- Import Prices
- Production, In Physical Terms, 2012–2024
- Production, In Value Terms, 2012–2024
- Production, By Country, 2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, 2012–2024
- Imports, In Value Terms, 2012–2024
- Imports, In Physical Terms, By Country, 2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country, 2012–2024
- Exports, In Physical Terms, 2012–2024
- Exports, In Value Terms, 2012–2024
- Exports, In Physical Terms, By Country, 2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, 2012–2024
