Knight Frank research shows home prices fell 32% after 48% rise in previous year.
Dubai suffered the biggest reversal among global housing markets in the wake of the global economic crisis, a new report reveals.
The research by London-based property broker Knight Frank said house prices in Dubai fell 32 percent in the 12 months ended March 31, compared to a rise of 48 percent the previous year.
“A lot will depend on developers and how long they can hold on before getting into fire-sale territory,” said Nick Barnes, head of international residential research at Knight Frank in comments reported by newswire Bloomberg on Tuesday.
Within a year, Dubai went from being the fastest rising of 46 markets monitored in the Knight Frank global house- price index to the second-biggest decliner after Latvia, the report said.
In the first quarter of 2009, house prices in Latvia dropped 36 percent, while Singapore was the third-worst performing market with a slide of almost 24 percent.
They were followed by the US and the UK, where prices declined about 17 percent.
The biggest increase in property values tracked by Knight Frank was for Israel, where homes appreciated by almost 11 percent. The Czech Republic and Jersey came second and third respectively, the broker said.