There's been significant change at the top of the world's residential real estate market.
"Obscure" markets such as Turkey now lead the way, with 13.9% growth ranking it top in the world in the last year, despite political turmoil surrounding the leadership of President Recep Tayyip Erdogan. That is, according to Knight Frank's Global House Price Index for the third quarter, which came out Wednesday.
New Zealand ranks next, with 13.5% growth in the last 12 months. But Iceland, in third place, is almost as hot, posting a 12.9% increase.
Among the top 10 you've got outliers such as Lithuania, Chile and Malta. "Established" markets such as Canada and Austria also join their ranks, and the fiery growth of China's Tier 1 cities has driven it to a resurgent No. 8, at 9.3% average growth for the year. Who says growth is slowing?
Good news for Chinese market leader Greenland Group SH:600606, No. 2 China Vanke (CVKEY) and their rivals Evergrande Real Estate (EGRNY) and Poly Real Estate SH:600048.
India has also performed well under the business-friendly leadership of Narendra Modi, who has actively courted major foreigner institutional investors. That group of major players have made India their No. 1 target for development and investment, according to a report from the Urban Land Institute -- that mines their intensions for the year ahead, as I explained earlier for TheStreet.com.
Given the lack of stock, it may not always be easy for investors to access the Indian market. Private homes are off limits to foreigners in India, but Blackstone (BX) , Brookfield Asset Management (BAM) , Dalian Wanda and its commercial subsidiary (DLWNY) and Fosun International (FOSUY) have all made major investments -- or are looking to do so.
The power players of the United States and the United Kingdom are only middling at best in the Knight Frank ranking. Estonia, Columbia, Latvia, Romania, Israel, Mexico, Bulgaria and the Czech Republic all best their performance in the last year.
My once-high-flying home base of Hong Kong is right at the bottom of performance, along with embattled Singapore, Taiwan and the laggard of them all -- Ukraine.
We will have to see if those frontier and emerging markets continue their pace at the top. The U.S., in particular, has shown strength of late, and consumers have bought into the Trump Presidency surprisingly quickly.
But one thing's for sure, the scattershot pattern occurring in the world's home prices shows how hard it is proving for the largest economies in the world to generate growth. How long will that last, I wonder?