Knight Frank experts emphasize that they expected a fall in real estate values, but 51 out of 56 surveyed markets showed an increase in prices compared to the same period last year. The only exception is the countries of the Asia-Pacific region.
The authors of the report state that despite the war in Ukraine, neighboring countries have shown a significant increase in prices. In particular, the nominal value of real estate in Slovakia increased by 25.5% (real, taking into account inflation, by 10.8%), in the Czech Republic by 23.5% (9.5%), in Estonia by 21% (5% ), Hungary – 19.5% (10.1%), Latvia – 17.3% (5.2%), Slovenia – 16.9% (11%), Poland – 13.5 (2.2%) , Romania – 6.9% (5%). Lithuania’s nominal growth was 14.8%, but real property prices adjusted for inflation decreased by 5.1%. The situation in Bulgaria is similar: nominally, prices increased by 11.5%, but considering inflation, experts record a decrease of 0.8%.
| COUNTRY | NOMINAL PRICE GROWTH | REAL PRICE GROWTH |
|---|---|---|
| Turkey | 160.6% | 45.9% |
| Slovakia | 25.5% | 10.8% |
| Czech Republic | 23.5% | 9.5% |
| Estonia | 21% | 5% |
| Hungary | 19.5% | 10.1% |
| Latvia | 17.3% | 5.2% |
| Slovenia | 16.9% | 11% |
| Poland | 13.5% | 2.2% |
| Romania | 6.9% | 5% |
| Lithuania | 14.8% | -5.1% |
| Bulgaria | 11.5% | -0.8% |
Turkey recorded the highest growth rates of the price index according to the results of the second quarter of 2022 – there, the nominal value increased by 161% for the year. However, the report’s authors emphasize that Turkey also shows record inflation rates over the past 24 years at 80%, so actual growth in real estate prices accounted for only 45.9%, which is still several times higher than second-ranked Slovakia.
In the conditions of rapid and hard-to-predict growth of the real estate value index in the world, price management of the objects being built and sold is of utmost importance for developers. Today, it is no longer enough to calculate the cost and sale prices. When the resources required for construction become uncontrollably expensive, the developer’s task is to sell the property at the highest price, covering the costs that increase over time and ensuring profit and further business development.
MAXIFY intelligent real estate price management system will help solve this task. The system analyzes each property sale agreement and, based on its results, automatically recalculates the value of each property remaining for sale from the developer. This helps to keep a wide range of apartments for a long time and increase the profit from the sale of the real estate object by 7-30% of the planned one. MAXIFY demonstrated such results based on the sales management of one of the leading Ukrainian developers in 2020-2021. Now the system is being implemented by developers in Austria, Poland, Georgia, and other countries in Europe and the Middle East.
