Research by eXp Realty has revealed which global cities have put in the strongest performance when it comes to capital appreciation on an annual basis.
Perhaps surprisingly, neither London nor Manchester make the top 10.
eXp Realty analysed annual growth in property values across 30 global cities, with one city, in particular, outperforming the rest by some margin.
The figures show that Krakow has proved to be the global hotspot when it comes to growth in real estate values over the last year. The city has seen the average value of a property increase by 24.7% when compared to this time last year.
Dubai ranks second, with real estate values up by 19.4% year on year, whilst Madrid completes the top three with growth of 18.9%.
Warsaw (+14.2%), Thessaloniki (+11%), Barcelona (+10.8%), Abu Dhabi (+10%), Porto (+8.6%), Athens (+7.5%) and Montreal (+6%) also rank within the top 10.
Other cities to have seen notable rates of annual growth include Lisbon (+4.7%), Mumbai (+4.6%) Tel-Aviv (+4.2%) and Manchester (+3.3%).
Real estate market performance has been more muted across Los Angeles (+1.9%), Sydney (+1.6%), Milan (+1.6%) Delhi (+1.5%), Rome (+1.5%) Jerusalem (+1.2%) and Hamburg (+0.3%).
Seven of the major global real estate hotspots analysed by eXp Realty have seen property values decline over the last year.
London has seen the most marginal decline at -0.5%, whilst the largest reductions have been seen across Berlin (-6.2%) and Paris (-5.5%).
Head of eXp UK, Adam Day, comments: “London is arguably one of the most desirable global real estate markets and it continues to boast one of the strongest property markets with respect to the overall price of property.
“However, higher interest rates have been a significant factor with respect to the city’s decline in property values over the last year, as buyers simply haven’t been able to stretch themselves financially as a result of higher borrowing costs.
“In contrast, Manchester has seen a far stronger rate of annual appreciation and the city continues to benefit from high demand driven by the ongoing investment being seen across the city. Despite this, both cities fall well outside of the top 10 where the hottest global property markets are concerned.”