Dubai's prime property prices have dipped by 4.5 percent in the second quarter of 2015 compared to the year-earlier period as currency fluctuations have deterred wealthy Europeans from investing, a new report has said.
Knight Frank’s Prime Global Cities Index revealed that prices of luxury real estate in the emirate also fell by 2.5 percent in the three months to June 30 and by more than three percent in the past six months.
Out of 35 real estate markets covered around the world, Dubai was one of the worst performing, ranked 30th, Knight Frank said.
Its report added: "With the dirham pegged to the US dollar, a strong currency is affecting Dubai’s luxury housing market leading to a 4.5 percent dip in prime prices in the year to June.
"Two key sources of demand, buyers from both the Eurozone and Russia are, as a result, less active."
Globally, the index increased by 2.5 percent in the year to June but recorded flat growth in the first half of 2015.
Vancouver, Miami and Sydney occupy the top three rankings in terms of annual price growth while seven of the top ten performing luxury markets are once again based in Asia or Australasia, mirroring the period post-Lehman.
Knight Frank said Singapore (down 15 percent year-on-year) is home to the weakest-performing luxury residential market for the sixth consecutive quarter.
Closer analysis showed that whilst more cities are recording positive annual price growth the number of exceptionally strong performing markets has declined. A year ago eight cities recorded double-digit annual price growth but this quarter only four cities fell within this bracket.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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