Average home prices in the country are expected to rise steadily over the next few years as affluent buyers drive up demand for high-end housing, according to a survey of property experts. They also warned of a continuing shortage of affordable homes.

Home purchases are increasingly concentrated among a relatively small group of buyers who are largely unaffected by higher interest rates. Economic growth, which is expected to remain stronger than that of many other major economies, is helping sustain housing demand, although analysts note that the benefits of this growth are flowing disproportionately to higher-income groups.

According to a poll conducted in May among 15 property market specialists, average home prices are projected to rise about 6% this year and next, slightly lower than the 7% forecast earlier. Home prices had risen 4.3% in 2023, based on estimates from a national housing price index.

The country's central banking authority, which previously raised interest rates by 250 basis points between 2022 and early 2023 to manage inflation, is widely expected to begin cutting rates next quarter. However, a stable currency and strong economic conditions provide limited pressure for immediate action.

Despite government efforts to expand affordable housing, a large majority of experts — 12 out of 15 — said demand in that segment will not be met over the next two to three years, while the remaining respondents predicted oversupply.

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