Global house prices are mirroring the upturn in the global economy, according to Knight Frank which reported in its Global House Price Index that property prices rose by 8.4% in 2013 compared with 4.6% in 2012.

Kate Everett-Allen, head of international residential research at Knight Frank, says: “Growth of 8.4% in 2013 represented the highest annual rate of growth since our index started in 1995.

The headline global index is now weighted according to each country’s GDP which means that the movement of house prices in the US and China will have a greater bearing on the index’s performance than that of locations such as Malta or Jersey.

“Dubai, China and Taiwan recorded the largest annual rise in mainstream house prices ending the year 35%, 28% and 15% higher respectively. Despite Dubai’s stand out performance in 2013, mainstream prices remain 25% below their 2008 peak.

“Thirty nine countries recorded positive annual price growth in 2013, a year earlier only 27 countries fell into this category. Several emerging markets, despite their economic wobble in 2013, still recorded a strong performance. Turkey, Brazil, Indonesia and Colombia are ranked in the top ten in terms of annual price growth, each having recorded double digit growth.”