By Staff writer
Knight Frank says prime rents in Dubai fell by just 0.4% over past year compared to 12.2% sales price decline
Prime rents in Dubai fell by an average of 0.4 percent over the past year compared to a sales price slump of more than 12 percent in the same period, according to Knight Frank.
Its Prime Rental Index for Q2 also showed the same decline over the six-month period to the end of June while rents rose 0.2 percent during Q2.
Prime global residential rents are struggling to achieve growth, with the Knight Frank index rising by only 0.2 percent in the past year, the slowest rate of growth since Q1 2010.
The relative stability in rental values contrasts with a sharp decline in sales prices which fell by the most in the world, according to Knight Frank’s Global House Price Index for the second quarter of 2015.
The index ranked Dubai's property sector 56th out of 56 markets covered around the world with an annual price slump of 12.2 percent.
The real estate consultancy said weaker demand, a strong US dollar and on-going cooling measures all contributed to the decline in property prices.
On the rental front, Cape Town was the best performing market in the world with a 10.4 percent increase in rents over the past year.
Dubai ranked 11th out of 18 real estate markets covered, Knight Frank said.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.