New data released by global property agency Knight Frank has revealed that Dubai property prices recorded their first quarterly decline in four years in the three months to September.
According to the agency’s latest global property price index, house prices in the emirate declined 5.2 per cent in the third quarter of this year – although prices there were still on average 12.5 per cent higher than they were at the same point last year.
A slowdown in Dubai’s property market was systematic of a trend seen throughout the index, with global property prices recording a mere 0.1 per cent increase between the second and third quarters of 2014.
“Muted growth in the third quarter comes on the back of jitters over the global economy, a lingering malaise in Europe and, in the US, a slower-than-expected housing recovery,” explained Kate Everett-Allen, of Knight Frank International Residential Research.
Somewhat surprisingly, given the doldrums its property market found itself in as recently as this time last year, Ireland recorded the highest quarterly price increase (6.2 per cent) and has also seen the largest rise in year-on-year prices as well (15 per cent). Hong Kong saw the second highest quarterly property price increases (5.4 per cent), followed by Croatia (4.7 per cent).
The largest three-monthly declines were recorded in Poland, where prices were down by 6.3 per cent from the previous quarter, followed by Dubai and then China (-3.1 per cent).
“Quarterly analysis shows all the world regions to be borderline anaemic with South America the top performer recording 1.6 per cent growth,” noted Everett-Allen. “This was due predominantly to Brazil and Colombia’s steady performance over the three-month period,” she added.
Article published 9th December 2014