Average prices of luxury homes in Dubai rose more than five percent in the first quarter of 2013, Knight Frank said on Monday.
Top-end property prices increased 18.3 percent over the past year, making Dubai the fourth best performing luxury real estate market in the world.
The Knight Frank Prime Global Cities Index for Q1 2013 also showed that prices in the emirate rose 10.9 percent since last September.
Dubai was only outperformed by Jakarta, Bangkok and Miami in the list of 29 cities tracked by the index.
While luxury house prices rose 5.4 percent in Dubai in the first three months of the year, the average global price fell by 0.4 percent although the annual rate remained positive at 3.6 percent, still well below the Dubai price hike.
Knight Frank said cities in Europe remained the weakest performers, recording a fall of 2.3 percent on average during Q1.
Jakarta (up 38.1 percent) was the strongest performing prime residential market while Tokyo (down 17.9 percent) was the weakest performing prime residential market in the last 12 months.
Cities in Asia, North America and the Middle East continued to dominate the top half of the results table while seven of the bottom ten rankings were occupied by European cities.
A typical prime property is now worth 21.3 percent more than it was in Q2 2009 when the Prime Global Cities Index hit its post-Lehman low, Knight Frank added.
New York luxury property prices fell 9.9 percent in the first three months of 2013, a reflection of the rush to complete sales in the final quarter of 2012 prior to the fiscal cliff which led to a markedly slower start to the year.
Knight Frank said it expects stronger growth to emerge in the second quarter of 2013 as buyers continue to search for luxury bricks and mortar as a way of sheltering their assets from the Eurozone’s continuing turmoil and the fragile global economy.
Knight Frank said last month that luxury property in Dubai recorded the world’s second highest price increase last year.
The value of top end homes in the emirate rose 20 percent, equal to the island of Bali and behind only the Indonesian capital, Jakarta.