The average value of a property in 150 cities worldwide increased by 4.3% in the year to June 2018, according to data by Knight Frank.

Its ‘Global Residential Cities Index’ revealed that the Indian city of Ahmedabad led the annual rankings this quarter, recording a 19% rise.

Two other Indian cities also made the top 10; Hyderabad (16%) and Pune (14%). According to government data, the Indian economy grew by 8.2% in the year to Q1 2018 and this is filtering through to housing demand and consumer confidence.

Budapest (15%), Rotterdam (14%) and Amsterdam (13%) were Europe’s frontrunners in the top 10. Domestic and international buyers have recognised Budapest’s competitive value while Dutch house prices – which were in decline until 2013 – have recorded a sharp correction.

Of the 150 cities monitored, 123 (82%) saw a rise in residential prices during the year to June.

The strongest-performing world region was Asia, with average prices ending the year to June 5.1% higher across the Asian cities recorded. North America came second, registering a growth of 5%.

Hong Kong, a long-term strong performer, registered a marginal slowdown in annual growth. However, prices in the year to June still rose by 15%. Its banks raised prime rates in September for the first time in 12 years, which fed through into mortgage payments and influenced Hong Kong borrowers.

Interestingly, of the countries where a rate rise has taken place in 2018, a number have a significant gap between their strongest and weakest performing city (16% in Canada, 11% in the UK and 10% in the US).

Some cities have also seen the performance of the mainstream and prime market diverge. A lack of supply is softening the top segment of the market in Sydney and Dubai, where annual prime price growth was 5.7% and -0.8% respectively.

Elsewhere, in Vancouver, Toronto and Hong Kong, tax changes targeting foreign buyers or higher stamp duty have resulted in slower growth at the wealthy end of the market.