By inflation, however, I don't mean the notorious consumer price index. In most countries, the CPI says nothing about property. What really matters is the monetary inflation—the money supply in an economy.
Take Sweden, for instance. I've never bought a house in Sweden, which may have been a mistake. The Swedish property index, as reported by the Statistiska Centralbyrån (Central Statistic Office) reveals an almost incessant growth since the beginning of the time series. The price index of Swedish houses with one or two dwellings has appreciated by the average rate of 5.5 per cent per annum, not counting possible renting income. Cool.
The following chart also shows the main reason behind the property price growth. It's the money supply growth measured by the M3 aggregate until 2006 and by M2 since then. (Oddly enough, the Swedish central bank ceased to publish the much-useful M3 series since 2006 due to a "methodology change". I don't understand the logic of central bankers.)