Over the past decade, changes in residential real estate prices on the global market have gone through a common cycle: a long upswing, a pandemic-era boom, a short correction when interest rates jumped, and now a period of slower but still positive growth in most markets.
Overall, prices for residential property worldwide have increased; however, the dynamics differ markedly between advanced and developing economies.
During this period, several countries have recorded particularly pronounced price increases. Notably, heightened global demand led to a significant rise in residential property prices during the pandemic years.
In the relevant literature, analysts distinguish between the real change of residential property price—where the value of the asset is adjusted for inflation relative to a base year—and the nominal price, which does not take inflation into account.
Turkey represents an illustrative case in this regard. Over the past five years, Turkey has experienced a sharp rise in house prices. According to Eurostat, from the end of 2019 to the end of 2024, nominal prices increased by 1,175%, while inflation was approximately 500%.
In Europe, Eurostat data indicate between the second quarters of 2020 and 2025, property prices increased most significantly in Portugal, by 40.6%. Comparing the second quarter of 2020 with the second quarter of 2025, substantial increases in property prices were also recorded in Croatia (29.9%), Hungary (29.4%), Lithuania (28.8%), Bulgaria (25.1%), Estonia (22.5%) and Slovenia (20.3%). Over the same period, the sharpest negative real price change were observed in Finland, where real values fell by 18%, followed by Romania (-13.7%) and Sweden (-10%). In Finland, the pronounced decline in residential property prices was driven by a combination of weaker economic growth, rising unemployment and a steep increase in interest rates from 2022 onwards.
Among the four largest economies of the European Union, real price growth was recorded only in Spain (+14%), while declines were observed in Germany (-8.5%), France (-6.1%) and Italy (-3%). In Spain, Croatia and Greece, rising prices have been significantly influenced by strong demand from foreign buyers and by price levels that remain comparatively low relative to Northern and Western Europe. At the same time, the increasing cost of servicing mortgage loans has begun to slow the pace of housing price growth in certain cities.
For the European Union as a whole, real prices (adjusted for inflation) increased by 3.3% between 2020 and 2025. Comparing data for 2010 with the second quarter of 2025, nominal prices are 60.5% higher. Over this fifteen-year horizon, the increase in residential property prices has been most pronounced in Hungary, Estonia, Lithuania and several other Central European countries, where prices have doubled or even tripled.
A study conducted by the Chapman University compared average annual family income with the average price of residential property worldwide, presenting the ratio on a scale of one to ten. The analysis found that housing is least affordable in Hong Kong (where prices are 14.4 times higher than annual income), Sydney (13.8 times), San Jose, California (12.1 times), Vancouver (11.8 times) and Los Angeles (11.2 times).
Statistics published by BestBrokers are also noteworthy. They present the ratio between the average annual income of a resident and the price of a 100 m² apartment. According to this study, access to housing is lowest in Nepal, where in 2025 the average annual income amounted to 2,490 USD, while the price of a 100 m² apartment was 154,870 USD. In other words, in Nepal the average annual income represents only 1.61% of the value of such a dwelling. Nepal is followed by China, with a ratio of 2.05% ($466,406 / $9,554), and India, with 2.09% ($121,963 /$ 2,547). The same ranking also includes Turkey, Indonesia, South Korea, Armenia and Peru. At the opposite end of the spectrum—where the purchase of an apartment is relatively most affordable for residents—South Africa ranks first, where the average annual income represents 18.19% of the price of a 100 m² apartment, followed by the United States with 16.92% ($298,789 / $50,544), Finland (11.84%), Bahrain (11.40%), Denmark (11.15%) and Ireland (10.04%).
Over the past decade, the United States has exhibited dynamics similar to those observed in other countries with respect to residential real estate: a period of peak price growth has been followed by a phase of relative moderation. Broadly speaking, since 2010 residential property prices have increased by approximately 50–60%. The most intense period was 2020–2022, when in some states annual nominal price growth reached around 10%. In 2024–2025, the rate of increase has slowed, with annual growth in the range of 2–3%.
The situation in Asia is more heterogeneous. In a number of rapidly growing markets, residential property prices have risen sharply over the past five years, including in the Philippines, Singapore, Vietnam, Kazakhstan (around 60%) and Pakistan (90–100%). By contrast, the increase has been much more modest in China, Korea and India. In fact, residential property prices in China have been declining continuously for the past four years. Prices for both new and existing properties are generally falling across most of the country, with only a few exceptions in highly developed cities and major urban centers. China’s real residential property price index is currently around 15–20% lower than both its 2010 level and its 2021 peak. Experts anticipate that nominal prices in China will decline further and are likely to stabilize only during 2026.
In many Latin American countries, nominal price growth over the past 5–10 years has also been strong, but high inflation in the region means that real price increases are considerably more limited. For example, in Mexico nominal residential property prices had risen by almost 170% by 2024. Significant growth is likewise observed in major tourist cities in Brazil, Mexico, Chile and Colombia.
In the main economic centers of the Middle East there has been a pronounced price boom over the last three to four years. In Dubai, for instance, average prices are now approximately 75% higher than at the beginning of 2021.
By contrast, in a number of African countries real price trends are much more stable or even negative. In South Africa, nominal prices have risen, but in real terms (adjusted for inflation) they remain about 10% below their 2010 level.
With regard to Georgia, residential property prices have been increasing on an annual basis, with the greatest pressure observed in the capital city. According to data from the National Statistics Office of Georgia, over the past five years prices for residential property (apartments and private houses) have risen by approximately 55–60%, placing Georgia among the more rapidly appreciating markets in the wider region.
In conclusion, over the last decade residential real estate has become an important indicator of the broader global economic environment. In countries with advanced economies, the long phase of rapid price appreciation has given way to a period of slower and more cautious growth, while many developing markets continue to exhibit strong—and in some cases highly volatile—price increases. Georgia is among these markets, with residential property prices having risen sharply in recent years.
If you are considering investing in real estate in Georgia, Kedaro Group is ready to provide you with professional guidance.
Contact us:
Email: kedarogroup@gmail.com
Phone: +995 593 618 181
Address: 18/22 G. Atoneli Street, 0105 Tbilisi, Georgia
