According to Knight Frank, the European debt crisis is affecting the global home price index, which has seen its worst performance since 2009.

According to Knight Frank's newest Global House Price Index, global home prices grew by only 0.9 percent in the year to March 2012, the lowest yearly performance since the depths of the recession in 2009. Doubts about the Eurozone's long-term viability, combined with Asian governments' determined efforts to cool their markets and discourage speculative investment, have taken their toll. Although global house prices remained unchanged in the first three months of 2012, it is the first time that yearly price growth has fallen below 1% since Q4 2009. اسعار

Highlights from the Knight Frank Global House Price Index: In the year to March 2012, the Knight Frank Global House Price Index increased by 0.9 percent.

In the first quarter of 2012, prices were unchanged.

Brazil had the highest yearly growth rate of 23.5 percent.

Ireland had the slowest growth rate, at -16.3 percent.

Africa has the fastest-falling house prices (-0.8 percent )

Growth in Asia Pacific has fallen to 2.1 percent.

According to the Knight Global House Price Index, house prices declined in 58 percent of countries in the first quarter of 2012.

The Eurozone's malaise, the IMF's decision to lower its GDP predictions, and concerns that the global economic recovery is struggling to get traction are all contributing to the decline in mood. According to the IMF, global GDP would expand by 3.3 percent in 2012 (up from 4 percent in 2011), whereas GDP in the Eurozone will shrink by 0.5 percent (previously 1.1 percent growth).

The uncertainty surrounding Europe's sovereign debt crisis (see Table 1) and Greece's political gridlock is influencing global trade decisions and consumer confidence.

There are few signals that European homeowners can be optimistic. Unemployment is rising as a result of government budget cuts, depleting salaries and disposable incomes, lowering housing demand. In the year leading up to March 2012, the average price of a home in Europe stayed unchanged. Estonia had the fastest growth rate of 13.9 percent, while Ireland had the slowest growth rate of -16.3 percent.

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In terms of housing costs, the Asian tiger today resembles a domestic cat, thanks to government measures to curb price inflation. In Q1 2010, the region's average annual price growth exceeded 16 percent, but two years later, it's closer to 2 percent. The region's growth continues to outpace the global average, although the margins have narrowed significantly.

Knight Frank's Director of Research in Asia, Nicholas Holt, tells World Property Channel, "The Chinese housing market has had a difficult year, with bank financing being tightened for both developers and buyers as a result of the ongoing cooling measures. Lending limitations, additional levies, a ban on multiple property acquisitions, and new laws aimed at limiting the inflow of hot foreign cash have all had the desired impact."

For global property markets, the next three to six months will be crucial. The crisis could be alleviated if unrest in Spain and Greece can be placated, and France and Germany can agree on a firm path of growth-promoting measures. In any case, the index will not begin to strengthen until 2013 and possibly the second half of that year.