By Andy Sambidge
Emirate named second best performing prime real estate market in world; 21.8% growth year-on-year
Dubai has been named the second best performing prime real estate market in the world during the third quarter of 2013.
According to the Knight Frank Prime Global Cities Index, prices in Dubai rose 3.4 percent in the three months to the end of September but this was almost half the growth seen in the previous quarter (6.1 percent)
The index, which was published on Tuesday, also showed that prices in the emirate rose by 8.7 percent in the past six months and nearly 22 percent in the past 12 months.
Dubai, which has seen a strong rebound in its property market since a crash in 2009/10 saw up to 60 percent knocked off prices, was second only to Jakarta which saw values rise by more than 27 percent year-on-year.
Globally, Knight Frank said prime prices across all 27 cities covered by the index rose by 6.6 percent on average in the year to September but by only 1.2 percent in the last three months.
It said China is defying expectations with Beijing recording the highest quarterly rise in prime prices, increasing by 7.9 percent.
Knight Frank added that the Middle East was the strongest performing region - on average luxury prices have risen by 13.1 percent in the last 12 months, with Dubai leading the boom.
This quarter’s results represent the index’s strongest annual growth since the third quarter of 2010 but its weakest quarterly growth since 2012.
Only five cities recorded negative growth over the last 12 months compared with 11 a year earlier.
"With the Eurozone crisis abating, economic confidence improving – particularly in influential markets such as the US, the UK and Germany – and the financial markets offering little return, the appetite amongst the world’s wealthy for luxury bricks and mortar is growing," Knight Frank said in a statement.
While the Middle East was the strongest performing region in the last 12 months, Asian cities presented a mixed picture.
At one end Jakarta’s strident economy is fuelling strong wealth creation, resulting in annual price growth but at the other end, India’s economy is struggling and
restrictions which prevent non-Indians purchasing property, means Mumbai’s prime market is treading water, recording only 0.2 percent growth in the three months to September.