12 Hottest Real Estate Markets on Earth

As the international economy lags, mainstream property prices are flagging around the world, according to Knight Frank's latest global house price index.

The index rose just 1 percent year-over-year in the third quarter of 2012. Price growth in Asia is slowing, and the 12 countries at the bottom of the list are all in Europe.

However, some housing markets are booming.

We drew on Knight Frank's list of 55 countries and highlighted the 12 with the hottest real estate markets -- based on those showing the largest price increases.

%Gallery-172882%
Read more on Business Insider:
17 Crazy Things That Only Happen in India
Giant Photos of the Critical Ports in Southern California that Strikers Have Brought to its Knees
The 15 Worst Housing Markets for the Next 5 Years

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.

Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.