Real Estate Prices vs. Inflation: Compare by Country (Last 10 Years)

Real estate is often considered a hedge against inflation.

The past decade shows that this depends greatly on the country. Some property markets recorded strong real growth, while others declined after adjusting for inflation.

This overview presents country-by-country results, allowing both institutional and individual investors to see where property values have kept pace with inflation and where they have not. The figures are calculated using each country’s house price index and consumer price index (CPI).

Methodology

• Inflation-adjusted data: All figures are real, adjusted for local consumer price inflation in the same currency.

• Focus: 10-year returns, as these give the best view of long-term performance.

• Interpretation: Positive numbers mean housing prices grew faster than inflation. Negative numbers mean housing failed to keep up with inflation.

Regional Performance

In Europe, the strongest results came from Portugal and Hungary, where housing values more than doubled in real terms. Croatia, Ireland, Bulgaria, and Iceland also delivered substantial increases. On the other side, Italy, Spain, Finland, and Latvia recorded declines after inflation, showing how divided the region has become.

Asia-Pacific was mixed. Japan and Taiwan performed well, with steady growth above inflation, while South Korea and Hong Kong recorded losses. Singapore delivered only moderate gains.

In the Americas, the United States and Canada showed reliable though moderate increases, while Chile was the clear outperformer in South America. Brazil and Peru, by contrast, lost significant value in real terms.

In the Middle East, Israel and the United Arab Emirates both recorded positive results, though not at the level of Europe’s best performers.

Africa delivered contrasting outcomes. Tunisia managed solid growth, while South Africa posted a decline.

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