Dubai prime property price growth almost halves in Q2

Annual price increases slump from 11.7% in Q1 to 6.3% three months later as mortgage cap, transfer fees hike kick in
Dubai prime property price growth almost halves in Q2
By Andy Sambidge
Wed 30 Jul 2014 01:35 PM

Annual growth in prime property prices in Dubai almost halved in the second quarter of 2014 compared to the previous quarter, Knight Frank said on Wednesday.

Prime prices rose by 6.3 percent in the year to June, down from 11.7 percent in the last quarter, its Prime Global Cities Index for Q2 revealed.

Dubai was ranked the 13th best performing real estate market tracked by the property consultancy, a sharp fall from previous quarters when the emirate has featured in the top two positions.

Knight Frank said moves to introduce a mortgage cap and double transfer fees at the end of 2013 has "influenced buyer activity more than forecast".

New research by Knight Frank also revealed that 25-35 percent of purchases in Dubai are mortgage financed, more than previously thought.

However, with new supply at the prime level looking limited over the next 18 months Knight Frank added that it expects prices in Dubai to strengthen in the remainder of 2014.

Globally, prime residential prices across the index’s 32 cities rose by 6.2 percent on average in the year to June 2014.

Of the 32 prime residential markets tracked by the index, 27 recorded positive annual price growth in the year to June 2014, up from 21 a year earlier.

Jakarta and Dublin stood out due to their stellar performances, ending the year to June 27.3 percent and 23.5 percent higher respectively. However, in both cases the rate of growth has slowed in the second quarter.

US cities also marched up the global list of prime property price growth with New York, Los Angeles, Miami and San Francisco all in the top 10.

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