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Animated Map: Where Are the Largest Cities Throughout History?

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Mapping the Largest Cities Throughout History

For much of human history, most people did not live in cities.

Citiesโ€”settlements that are densely populated and self-administeredโ€”require many specific prerequisites to come into existence. The most crucial, especially for much of human history, is an abundance of food.

Surplus food production leads to denser populations and allows for people to specialize in other skills that are not associated with basic human survival.

But that also means that cities usually consume more primary goods than they produce. And their size requires a host of many other servicesโ€”such as transport and sanitationโ€”that are traditionally expensive to maintain. So maintaining large urban centers, and especially the world’s largest cities, was a monumental task.

Mapper and history YouTuber Ollie Bye has visualized the seven largest cities in the world since 3,000 BCE. His video covers cities with a minimum population of 10,000 and hints at historical events which led to the establishment, growth, and eventual fall of cities.

The World’s Largest City Throughout History

With any historical data, accuracy is always a concern, and urban populations were rough and infrequent estimates up until the Industrial Revolution.

Bye has used a variety of data sourcesโ€”including the UN and many research papersโ€”to create the dataset used in the video.

In some places he also had to rely on his own estimates and criteria to keep the data reasonable and consistent:

  • In early history, some cities didn’t have given population estimates for long periods of time, and had to be equalized or estimated through other sources. For example, Babylon had a population estimate at 1,600 BCE (60,000) and at 1,200 BCE (75,000) but none in the 400 years between.
  • Cities that only briefly climbed above a population of 10,000, or that would have made the largest cities ranking for only a couple of years (and based on uncertain estimates), were not included.

Here’s a look at the largest city starting from the year 3,000 BCE, with populations listed in millions during the last year of each city’s “reign.” Cities are also listed with the flags of current-day countries in the same location.

Time PeriodLargest CityPopulation (Millions)Country
3000-2501 BCEUruk0.08Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
2500-2251 BCELagash0.06Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
2250-2001 BCEGirsu0.08Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
2000-1751 BCEIsin0.04Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
1750-1251 BCEBabylon0.06Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
1250-1001 BCEPi-Ramesses0.16Egypt ๐Ÿ‡ช๐Ÿ‡ฌ
1000-601 BCEThebes0.12Egypt ๐Ÿ‡ช๐Ÿ‡ฌ
600-301 BCEBabylon0.20Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
300-201 BCECarthage0.40Tunisia ๐Ÿ‡น๐Ÿ‡ณ
200 BCE-270 CEAlexandria0.60Egypt ๐Ÿ‡ช๐Ÿ‡ฌ
271-350 CERome0.39Italy ๐Ÿ‡ฎ๐Ÿ‡น
351-500 CEConstantinople0.49Turkey ๐Ÿ‡น๐Ÿ‡ท
501-640 CECtesiphon0.50Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
641-644 CEConstantinople0.40Turkey ๐Ÿ‡น๐Ÿ‡ท
645-795 CEChang'an0.59China ๐Ÿ‡จ๐Ÿ‡ณ
796-963 CEBaghdad1.10Iraq ๐Ÿ‡ฎ๐Ÿ‡ถ
964-975 CEConstantinople0.32Turkey ๐Ÿ‡น๐Ÿ‡ท
976-984 CECรณrdoba0.33Spain ๐Ÿ‡ช๐Ÿ‡ธ
985-1144 CEBian0.44China ๐Ÿ‡จ๐Ÿ‡ณ
1145-1199 CEConstantinople0.24Turkey ๐Ÿ‡น๐Ÿ‡ท
1200-1275 CELin'an0.36China ๐Ÿ‡จ๐Ÿ‡ณ
1276-1278 CECairo0.37Egypt ๐Ÿ‡ช๐Ÿ‡ฌ
1279-1315 CEHangzhou0.43China ๐Ÿ‡จ๐Ÿ‡ณ
1316-1348 CECairo0.50Egypt ๐Ÿ‡ช๐Ÿ‡ฌ
1349-1353 CEHangzhou0.43China ๐Ÿ‡จ๐Ÿ‡ณ
1344-1380 CECairo0.35Egypt ๐Ÿ‡ช๐Ÿ‡ฌ
1381-1394 CEVijayanagara0.36India ๐Ÿ‡ฎ๐Ÿ‡ณ
1395-1426 CEYingtian0.50China ๐Ÿ‡จ๐Ÿ‡ณ
1427-1441 CEVijayanagara0.44India ๐Ÿ‡ฎ๐Ÿ‡ณ
1442-1612 CEBeijing0.70China ๐Ÿ‡จ๐Ÿ‡ณ
1613-1678 CEConstatinople0.74Turkey ๐Ÿ‡น๐Ÿ‡ท
1679-1720 CEDhaka0.78Bangladesh ๐Ÿ‡ง๐Ÿ‡ฉ
1721-1826 CEBeijing1.30China ๐Ÿ‡จ๐Ÿ‡ณ
1827-1918 CELondon7.40UK ๐Ÿ‡ฌ๐Ÿ‡ง
1919-1954 CENew York13.20U.S. ๐Ÿ‡บ๐Ÿ‡ธ
1955-PresentTokyo37.30Japan ๐Ÿ‡ฏ๐Ÿ‡ต

Ancient Cities in the Fertile Crescent

Considered the โ€œcradle of civilization,โ€ the Fertile Crescent in the Middle East was home to all seven of the largest cities in the world in 3,000 BCE.

The Sumerian city of Uruk (modern-day Iraq), allegedly home to the legendary king Gilgamesh, topped the list with 40,000 people. It was followed by Memphis (Egypt) with 20,000 inhabitants.

For the next 1,700 years, other Mesopotamian cities in modern-day Iraq and Syria held pole positions, growing steadily and shuffling between themselves as the largest.

2,250 BCE marked the first time a different Asian cityโ€”Mohenjo-Daro (modern-day Pakistan) from the Indus Valley Civilizationโ€”found a spot at #4 with 40,000 people.

The table below is a quick snapshot of the seven largest cities in the world for from 3,000 BCE to 200 CE. Again, populations are listed in millions.

Rank3000 BCE2250 BCE1250 BCE200 CE
1Uruk (0.04) ๐Ÿ‡ฎ๐Ÿ‡ถGirsu (0.08) ๐Ÿ‡ฎ๐Ÿ‡ถPi-Ramesses (0.16) ๐Ÿ‡ช๐Ÿ‡ฌAlexandria (0.60) ๐Ÿ‡ช๐Ÿ‡ฌ
2Memphis (0.02) ๐Ÿ‡ช๐Ÿ‡ฌMari (0.05) ๐Ÿ‡ธ๐Ÿ‡พYin (0.12) ๐Ÿ‡จ๐Ÿ‡ณPataliputra (0.35) ๐Ÿ‡ฎ๐Ÿ‡ณ
3Umma (0.02) ๐Ÿ‡ฎ๐Ÿ‡ถUmma (0.04) ๐Ÿ‡ฎ๐Ÿ‡ถThebes (0.08) ๐Ÿ‡ช๐Ÿ‡ฌCarthage (0.20) ๐Ÿ‡น๐Ÿ‡ณ
4Nagar (0.02) ๐Ÿ‡ธ๐Ÿ‡พMohenjo-daro (0.04) ๐Ÿ‡ต๐Ÿ‡ฐSapinuwa (0.07) ๐Ÿ‡น๐Ÿ‡ทLuoyang (0.20) ๐Ÿ‡จ๐Ÿ‡ณ
5Lagash (0.02) ๐Ÿ‡ฎ๐Ÿ‡ถAkkad (0.03) ๐Ÿ‡ฎ๐Ÿ‡ถBabylon (0.07) ๐Ÿ‡ฎ๐Ÿ‡ถSeleucia (0.20) ๐Ÿ‡ฎ๐Ÿ‡ถ
6Larak (0.01) ๐Ÿ‡ฎ๐Ÿ‡ถUruk (0.03) ๐Ÿ‡ฎ๐Ÿ‡ถHattusa (0.06) ๐Ÿ‡น๐Ÿ‡ทPergamon (0.20) ๐Ÿ‡น๐Ÿ‡ท
7Eridu (0.01) ๐Ÿ‡ฎ๐Ÿ‡ถMemphis (0.03) ๐Ÿ‡ช๐Ÿ‡ฌUruk (0.03) ๐Ÿ‡ฎ๐Ÿ‡ถTaxila (0.10) ๐Ÿ‡ต๐Ÿ‡ฐ

It wasnโ€™t until 1,250 BCE that the top two spots were taken by cities in different regions: Pi-Ramesses (Egypt) and Yin (China), both with more than 100,000 residents.

Egyptian cities would continue to be the most populous for the next millenniumโ€”briefly interrupted by Carthage and Babylonโ€”until the start of the Common Era. By 30 CE, Alexandria was the largest city in the world, but the top 10 had representatives from the Middle East, Northern Africa, and Asia.

All Roads Lead to Rome

One city in Europe meanwhile, was also beginning to see steady growthโ€”Rome.

It took until halfway through the 3rd century C.E. for Rome to become the most populous city, followed closely still by Alexandria (Egypt). Meanwhile in Iraq, Ctesiphon, the capital of the Sasanian empire was growing rapidly.

Rank271 CE351 CE501 CE645 CE
1Rome (0.39) ๐Ÿ‡ฎ๐Ÿ‡นConstantinople (0.29) ๐Ÿ‡น๐Ÿ‡ทCtesiphon (0.41) ๐Ÿ‡ฎ๐Ÿ‡ถChang'an (0.38) ๐Ÿ‡จ๐Ÿ‡ณ
2Alexandria (0.37) ๐Ÿ‡ช๐Ÿ‡ฌCtesiphon (0.25) ๐Ÿ‡ฎ๐Ÿ‡ถConstantinople (0.40) ๐Ÿ‡น๐Ÿ‡ทConstantinople (0.32) ๐Ÿ‡น๐Ÿ‡ท
3Luoyang (0.20) ๐Ÿ‡จ๐Ÿ‡ณRome (0.24) ๐Ÿ‡ฎ๐Ÿ‡นLuoyang (0.20) ๐Ÿ‡จ๐Ÿ‡ณKanyakubja (0.24) ๐Ÿ‡ฎ๐Ÿ‡ณ
4Vaishali (0.17) ๐Ÿ‡ฎ๐Ÿ‡ณPataliputra (0.22) ๐Ÿ‡ฎ๐Ÿ‡ณTeotihuacan (0.15) ๐Ÿ‡ฒ๐Ÿ‡ฝLuoyang (0.21) ๐Ÿ‡จ๐Ÿ‡ณ
5Carthage (0.16) ๐Ÿ‡น๐Ÿ‡ณLuoyang (0.20) ๐Ÿ‡จ๐Ÿ‡ณJiankang (0.15) ๐Ÿ‡จ๐Ÿ‡ณEl Pilar (0.17) ๐Ÿ‡ง๐Ÿ‡ฟ
6Teotihuacan (0.14) ๐Ÿ‡ฒ๐Ÿ‡ฝVaishali (0.16) ๐Ÿ‡ฎ๐Ÿ‡ณCaracol (0.14) ๐Ÿ‡ง๐Ÿ‡ฟCtesiphon (0.41) ๐Ÿ‡ฎ๐Ÿ‡ถ
7Antioch (0.12) ๐Ÿ‡น๐Ÿ‡ทTeotihuacan (0.15) ๐Ÿ‡ฒ๐Ÿ‡ฝChang'an (0.10) ๐Ÿ‡จ๐Ÿ‡ณTeotihuacan (0.15) ๐Ÿ‡ฒ๐Ÿ‡ฝ

Towards the end of the 3rd century, the Roman empire was divided into two, with Constantinople becoming the new capital for the Eastern half. Consequently, it had outgrown Rome by 353 and become the world’s most populous city, and for the next few centuries would reclaim this title time and time again.

The Largest Cities Reach 1 Million

In the 9th century, Baghdad became the first city to have 1 million residents (though historians also estimate Rome and the Chinese city of Chang’an may have achieved that figure earlier).

It would be nearly nine centuries until a city had one million inhabitants again, and Baghdadโ€™s reign didnโ€™t last long. By the 10th century, Bian, the capital of the Northern Song dynasty in China, had become the largest city in the world, with Baghdad suffering from relocations and shifting political power to other cities in the region.

Rank850 CE985 CE1316 CE1381 CE
1Baghdad (1.00) ๐Ÿ‡ฎ๐Ÿ‡ถBian (0.35) ๐Ÿ‡จ๐Ÿ‡ณCairo (0.44) ๐Ÿ‡ช๐Ÿ‡ฌVijayanagara (0.36) ๐Ÿ‡ฎ๐Ÿ‡ณ
2Chang'an (0.60) ๐Ÿ‡จ๐Ÿ‡ณCรณrdoba (0.33) ๐Ÿ‡ช๐Ÿ‡ธHangzhou (0.43) ๐Ÿ‡จ๐Ÿ‡ณCairo (0.35) ๐Ÿ‡ช๐Ÿ‡ฌ
3Constantinople (0.27) ๐Ÿ‡น๐Ÿ‡ทConstantinople (0.32) ๐Ÿ‡น๐Ÿ‡ทDadu (0.40) ๐Ÿ‡จ๐Ÿ‡ณParis (0.29) ๐Ÿ‡ซ๐Ÿ‡ท
4Kanyakubja (0.21) ๐Ÿ‡ฎ๐Ÿ‡ณAngkor (0.18) ๐Ÿ‡ฐ๐Ÿ‡ญParis (0.25) ๐Ÿ‡ซ๐Ÿ‡ทYingtian (0.27) ๐Ÿ‡จ๐Ÿ‡ณ
5Luoyang (0.20) ๐Ÿ‡จ๐Ÿ‡ณBaghdad (0.17) ๐Ÿ‡ฎ๐Ÿ‡ถKamakura (0.20) ๐Ÿ‡ฏ๐Ÿ‡ตHangzhou (0.23) ๐Ÿ‡จ๐Ÿ‡ณ
6Bian (0.17) ๐Ÿ‡จ๐Ÿ‡ณKyoto (0.15) ๐Ÿ‡ฏ๐Ÿ‡ตGuangzhou (0.15) ๐Ÿ‡จ๐Ÿ‡ณBeiping (0.15) ๐Ÿ‡จ๐Ÿ‡ณ
7Cรณrdoba (0.16) ๐Ÿ‡ช๐Ÿ‡ธCairo (0.12) ๐Ÿ‡ช๐Ÿ‡ฌFez (0.14) ๐Ÿ‡ฒ๐Ÿ‡ฆTabriz (0.14) ๐Ÿ‡ฎ๐Ÿ‡ท

From the 12th century onwards, Mongol invasions in the Middle East and Central Asia severely limited population growth in the region. European cities too were ravaged in the 14th century, but by plagues instead of marauders.

For the next few hundred years, Cairo (Egypt), Hangzhou (China), and Vijayanagara (India) would top the list until Beijing took (and mostly held onto) the top spot through the 19th century.

Industrial Revolution and Rapid Urbanization

The start of the Industrial Revolution in the UKโ€”spreading to the rest of Europe and later on the U.S.โ€”led to hitherto unseen levels of urban population growth.

Factories needed labor, which caused mass emigration from the rural countryside to urban centers of growth.

In 1827, London passed Beijing to become the largest city in the world with 1.3 million residents. Over the next 100 years, its population increased nearly 7 times, remaining the most populous city until the end of World War I, by which time it was overtaken by New York.

Rank1442185119191955
1Beijing (0.51) ๐Ÿ‡จ๐Ÿ‡ณLondon (2.2) ๐Ÿ‡ฌ๐Ÿ‡งNew York (7.6) ๐Ÿ‡บ๐Ÿ‡ธTokyo (13.7) ๐Ÿ‡ฏ๐Ÿ‡ต
2Vijayanagara (0.44) ๐Ÿ‡ฎ๐Ÿ‡ณBeijing (1.6) ๐Ÿ‡จ๐Ÿ‡ณLondon (7.4) ๐Ÿ‡ฌ๐Ÿ‡งNew York (13.2) ๐Ÿ‡บ๐Ÿ‡ธ
3Cairo (0.37) ๐Ÿ‡ช๐Ÿ‡ฌParis (1.3) ๐Ÿ‡ซ๐Ÿ‡ทParis (4.7) ๐Ÿ‡ซ๐Ÿ‡ทOsaka (8.6) ๐Ÿ‡ฏ๐Ÿ‡ต
4Hangzhou (0.24) ๐Ÿ‡จ๐Ÿ‡ณGuangzhou (0.87) ๐Ÿ‡จ๐Ÿ‡ณTokyo (4.3) ๐Ÿ‡ฏ๐Ÿ‡ตLondon (8.2) ๐Ÿ‡ฌ๐Ÿ‡ง
5Tabriz (0.21) ๐Ÿ‡ฎ๐Ÿ‡ทConstantinople (0.71) ๐Ÿ‡น๐Ÿ‡ทBerlin (3.7) ๐Ÿ‡ฉ๐Ÿ‡ชParis (6.7) ๐Ÿ‡ซ๐Ÿ‡ท
6Nanjing (0.18) ๐Ÿ‡จ๐Ÿ‡ณEdo (0.78) ๐Ÿ‡ฏ๐Ÿ‡ตChicago (2.9) ๐Ÿ‡บ๐Ÿ‡ธBuenos Aires (5.9) ๐Ÿ‡ฆ๐Ÿ‡ท
7Granada (0.15) ๐Ÿ‡ช๐Ÿ‡ธNew York (0.56) ๐Ÿ‡บ๐Ÿ‡ธVienna (1.9) ๐Ÿ‡ฆ๐Ÿ‡นMoscow (5.7) ๐Ÿ‡ท๐Ÿ‡บ

From 1920 to 2022, the world population quadrupled thanks to improvements in farming and healthcare, and cities saw rapid growth as well. The beginning of the 20st century saw the top 10 largest cities in the world in the U.S., Europe, and Japan.

By the 21st century however, growth shifted away to other parts of the world and by 2021, the top seven had cities only from Asia and the Americas.

Rank1970199020002021
1Tokyo (23.2) ๐Ÿ‡ฏ๐Ÿ‡ตTokyo (32.7) ๐Ÿ‡ฏ๐Ÿ‡ตTokyo (34.3) ๐Ÿ‡ฏ๐Ÿ‡ตTokyo (37.3) ๐Ÿ‡ฏ๐Ÿ‡ต
2New York (16.1) ๐Ÿ‡บ๐Ÿ‡ธOsaka (18.5) ๐Ÿ‡ฏ๐Ÿ‡ตOsaka (18.6) ๐Ÿ‡ฏ๐Ÿ‡ตNew Delhi (31.1) ๐Ÿ‡ฎ๐Ÿ‡ณ
3Osaka (15.2) ๐Ÿ‡ฏ๐Ÿ‡ตNew York (16.2) ๐Ÿ‡บ๐Ÿ‡ธMexico City (18.4) ๐Ÿ‡ฒ๐Ÿ‡ฝShanghai (27.7) ๐Ÿ‡จ๐Ÿ‡ณ
4Mexico City (8.8) ๐Ÿ‡ฒ๐Ÿ‡ฝMexico City (15.9) ๐Ÿ‡ฒ๐Ÿ‡ฝNew York (17.8) ๐Ÿ‡บ๐Ÿ‡ธSao Paulo (22.2) ๐Ÿ‡ง๐Ÿ‡ท
5Buenos Aires (8.4) ๐Ÿ‡ฆ๐Ÿ‡ทSao Paulo (15.0) ๐Ÿ‡ง๐Ÿ‡ทSao Paulo (17.0) ๐Ÿ‡ง๐Ÿ‡ทMexico City (21.9) ๐Ÿ‡ฒ๐Ÿ‡ฝ
6Los Angeles (8.3) ๐Ÿ‡บ๐Ÿ‡ธBombay (12.7) ๐Ÿ‡ฎ๐Ÿ‡ณMumbai (16.1) ๐Ÿ‡ฎ๐Ÿ‡ณDhaka (21.7) ๐Ÿ‡ง๐Ÿ‡ฉ
7Paris (8.2) ๐Ÿ‡ซ๐Ÿ‡ทBuenos Aires (11.2) ๐Ÿ‡ฆ๐Ÿ‡ทNew Delhi (15.6) ๐Ÿ‡ฎ๐Ÿ‡ณBeijing (20.8) ๐Ÿ‡จ๐Ÿ‡ณ

Tokyo, which took the top spot in 1954, is the largest city in the world today with a population of 37 million (including the entire metropolitan area).

It is followed by New Delhi with 31 million, but by 2028, the UN estimates that positions will switch on the leaderboard and New Delhi will overtake Tokyo.

What Does Population Growth Say About the Past (and Future)?

The rise and fall of cities through the sands of time can give us insight into the trajectory of civilization growth. As civilizations grow, become richer, and reach their zenith, so too do their cities blossom in tandem.

For example, of the modern-day seven largest cities in the world, four of them belong to countries with the 10 largest economies in the world.

Meanwhile, sudden falls in urban population point to turbulenceโ€”political instability, wars, natural disasters, or disease.

Most recently Ukraineโ€™s cities are seeing depopulation as residents flee conflict zones, raising the specter of a demographic crisis for the country should the war continue.

Thus, tracking the size of urban population can help policymakers forecast future roadblocks to growth, especially when prioritizing sustainable growth for a country.

Data note: The dataset uses the name of the city in that year, leading to the same city being named differently through the years.
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Mapped: The Growth in House Prices by Country

Global house prices were resilient in 2022, rising 6%. We compare nominal and real price growth by country as interest rates surged.

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The Growth in House Prices by Country

Mapped: The Growth in House Prices by Country

This was originally posted on Advisor Channel. Sign up to the free mailing list to get beautiful visualizations on financial markets that help advisors and their clients.

Global housing prices rose an average of 6% annually, between Q4 2021 and Q4 2022.

In real terms that take inflation into account, prices actually fell 2% for the first decline in 12 years. Despite a surge in interest rates and mortgage costs, housing markets were noticeably stable. Real prices remain 7% above pre-pandemic levels.

In this graphic, we show the change in residential property prices with data from the Bank for International Settlements (BIS).

The Growth in House Prices, Ranked

The following dataset from the BIS covers nominal and real house price growth across 58 countries and regions as of the fourth quarter of 2022:

Price Growth
Rank
Country /
Region
Nominal Year-over-Year
Change (%)
Real Year-over-Year
Change (%)
1๐Ÿ‡น๐Ÿ‡ท Tรผrkiye167.951.0
2๐Ÿ‡ท๐Ÿ‡ธ Serbia23.17.0
3๐Ÿ‡ท๐Ÿ‡บ Russia23.19.7
4๐Ÿ‡ฒ๐Ÿ‡ฐ North Macedonia20.61.0
5๐Ÿ‡ฎ๐Ÿ‡ธ Iceland20.39.9
6๐Ÿ‡ญ๐Ÿ‡ท Croatia17.33.6
7๐Ÿ‡ช๐Ÿ‡ช Estonia16.9-3.0
8๐Ÿ‡ฎ๐Ÿ‡ฑ Israel16.811.0
9๐Ÿ‡ญ๐Ÿ‡บ Hungary16.5-5.1
10๐Ÿ‡ฑ๐Ÿ‡น Lithuania16.0-5.5
11๐Ÿ‡ธ๐Ÿ‡ฎ Slovenia15.44.2
12๐Ÿ‡ง๐Ÿ‡ฌ Bulgaria13.4-3.2
13๐Ÿ‡ฌ๐Ÿ‡ท Greece12.23.7
14๐Ÿ‡ต๐Ÿ‡น Portugal11.31.3
15๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom10.0-0.7
16๐Ÿ‡ธ๐Ÿ‡ฐ Slovak Republic9.7-4.8
17
๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates
9.62.9
18๐Ÿ‡ต๐Ÿ‡ฑ Poland9.3-6.9
19๐Ÿ‡ฑ๐Ÿ‡ป Latvia9.1-10.2
20๐Ÿ‡ธ๐Ÿ‡ฌ Singapore8.61.9
21๐Ÿ‡ฎ๐Ÿ‡ช Ireland8.6-0.2
22๐Ÿ‡จ๐Ÿ‡ฑ Chile8.2-3.0
23๐Ÿ‡ฏ๐Ÿ‡ต Japan7.93.9
24๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico7.9-0.1
25๐Ÿ‡ต๐Ÿ‡ญ Philippines7.7-0.2
26๐Ÿ‡บ๐Ÿ‡ธ United States7.10.0
27๐Ÿ‡จ๐Ÿ‡ฟ Czechia6.9-7.6
28๐Ÿ‡ท๐Ÿ‡ด Romania6.7-7.5
29๐Ÿ‡ฒ๐Ÿ‡น Malta6.3-0.7
30๐Ÿ‡จ๐Ÿ‡พ Cyprus6.3-2.9
31๐Ÿ‡จ๐Ÿ‡ด Colombia6.3-5.6
32๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg5.6-0.5
33๐Ÿ‡ช๐Ÿ‡ธ Spain5.5-1.1
34๐Ÿ‡จ๐Ÿ‡ญ Switzerland5.42.4
35๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands5.4-5.3
36๐Ÿ‡ฆ๐Ÿ‡น Austria5.2-4.8
37๐Ÿ‡ซ๐Ÿ‡ท France4.8-1.2
38๐Ÿ‡ง๐Ÿ‡ช Belgium4.7-5.7
39๐Ÿ‡น๐Ÿ‡ญ Thailand4.7-1.1
40๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa3.1-4.0
41๐Ÿ‡ฎ๐Ÿ‡ณ India2.8-3.1
42๐Ÿ‡ฎ๐Ÿ‡น Italy2.8-8.0
43๐Ÿ‡ณ๐Ÿ‡ด Norway2.6-3.8
44๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia2.0-3.4
45๐Ÿ‡ต๐Ÿ‡ช Peru1.5-6.3
46๐Ÿ‡ฒ๐Ÿ‡พ Malaysia1.2-2.6
47๐Ÿ‡ฐ๐Ÿ‡ท South Korea-0.1-5.0
48๐Ÿ‡ฒ๐Ÿ‡ฆ Morocco-0.1-7.7
49๐Ÿ‡ง๐Ÿ‡ท Brazil-0.1-5.8
50๐Ÿ‡ซ๐Ÿ‡ฎ Finland-2.3-10.2
51๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark-2.4-10.6
52๐Ÿ‡ฆ๐Ÿ‡บ Australia-3.2-10.2
53๐Ÿ‡ฉ๐Ÿ‡ช Germany-3.6-12.1
54๐Ÿ‡ธ๐Ÿ‡ช Sweden-3.7-13.7
55๐Ÿ‡จ๐Ÿ‡ณ China-3.7-5.4
56๐Ÿ‡จ๐Ÿ‡ฆ Canada-3.8-9.8
57๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand-10.4-16.5
58๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong SAR-13.5-15.1

Tรผrkiyeโ€™s property prices jumped the highest globally, at nearly 168% amid soaring inflation.

Real estate demand has increased alongside declining interest rates. The government drastically cut interest rates from 19% in late 2021 to 8.5% to support a weakening economy.

Many European countries saw some of the highest price growth in nominal terms. A strong labor market and low interest rates pushed up prices, even as mortgage rates broadly doubled across the continent. For real price growth, most countries were in negative territoryโ€”notably Sweden, Germany, and Denmark.

Nominal U.S. housing prices grew just over 7%, while real price growth halted to 0%. Prices have remained elevated given the stubbornly low supply of inventory. In fact, residential prices remain 45% above pre-pandemic levels.

How Do Interest Rates Impact Property Markets?

Global house prices boomed during the pandemic as central banks cut interest rates to prop up economies.

Now, rates have returned to levels last seen before the Global Financial Crisis. On average, rates have increased four percentage points in many major economies. Roughly three-quarters of the countries in the BIS dataset witnessed negative year-over-year real house price growth as of the fourth quarter of 2022.

Interest rates have a large impact on property prices. Cross-country evidence shows that for every one percentage point increase in real interest rates, the growth rate of housing prices tends to fall by about two percentage points.

When Will Housing Prices Fall?

The rise in U.S. interest rates has been counteracted by homeowners being reluctant to sell so they can keep their low mortgage rates. As a result, it is keeping inventory low and prices high. Homeowners canโ€™t sell and keep their low mortgage rates unless they meet strict conditions on a new property.

Additionally, several other factors impact price dynamics. Construction costs, income growth, labor shortages, and population growth all play a role.

With a strong labor market continuing through 2023, stable incomes may help stave off prices from falling. On the other hand, buyers with floating-rate mortgages face steeper costs and may be unable to afford new rates. This could increase housing supply in the market, potentially leading to lower prices.

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