Dubai house prices rise 9.2% in Q1 - Knight Frank

Emirate is second best performing real estate market in world behind China during first quarter

House prices in Dubai rose more than nine percent in the three months to the end of March, according to the latest Knight Frank Global House Price Index.

The real estate consultancy's index showed that the emirate was the second best performing country out of 55 covered between Q4 2012 and Q1 2013, behind China which registered growth of 10.7 percent.

Dubai's 9.2 percent growth brought annual price rises in the emirate to 21.1 percent compared to Q1 2012.

The index also showed that prices in the Dubai property market rose on average by 18.9 percent since Q3 last year.

The report, published on Monday, comes as the real estate market in Dubai enters a new phase of growth and recovery following its decline during the global economic crisis when prices fell more than 60 percent from 2008 peaks.

Thirty five of the 55 housing markets (63 percent) tracked by Knight Frank recorded an increase in mainstream property prices in the year to March.

The index now stands 14.7 percent above its recessional low in Q1 2009.

Property prices in all world regions, except Europe, increased in the year to March with the Middle East performing best, rising by 10.6 percent on average.

The Knight Frank index ranked Hong Kong as the top real estate market for growth over the last 12 months, registering 28 percent growth.

Globally, house prices rose on average by two percent during Q1 and by 6.6 percent over the 12-month period.

Greece recorded the largest annual fall in prices for the third consecutive quarter, declining by nearly 12 percent and the Eurozone crisis continues.

Europe was the weakest-performing region with house prices falling by 0.3 percent on average during the last year.

The US saw prices rise by more than 10 percent, its highest rate of annual growth since 2006, Knight Frank said.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

Posted by: vikram

why are the people dont understand the economy has to work on "price elasticity of demand" otherwise doom to fail (or rather get caught on the lie being spread like this one)

Posted by: Neil

The dollar has been, and continues to be, massively devalued. A property/asset bubble like the world has never seen is coming. Hold on to your hats!!!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

Abu Dhabi real estate: Down, but not out

Abu Dhabi real estate: Down, but not out

While there has been evidence of rents in the richest emirate...

Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

Most Discussed