Dubai residential price growth slows dramatically in Q1

Knight Frank's latest Prime Global Cities Index says Dubai prices rose 0.6%, lower than the global average
Dubai residential price growth slows dramatically in Q1
By Andy Sambidge
Sat 10 May 2014 02:26 AM

Prime residential prices in Dubai rose by just 0.6 percent during the first three months of 2014, signalling a slowdown in growth in the emirate's booming real estate market.

According to Knight Frank's latest Prime Global Cities Index for Q1, Dubai's price growth between December 2013 and March was lower than the global average and way down on the 5.4 percent growth seen in Q1 last year.

Dubai was named the eighth best performing property market out of 32 covered, with average price growth of 11.7 percent over the past year.

The index also showed that growth over the past six months (September 2013 to March 2014) was 1.7 percent, a rate much slower than in the previous 12 months.

In March, Knight Frank named Dubai the world's best performing real estate market during 2013 with price growth nudging 35 percent.

The Knight Frank Global House Price Index showed mainstream property prices in the emirate rose by 34.8 percent during the last 12 months.

Although the increase slowed slightly in the last six months to 15.3 percent, Knight Frank said prices in Dubai were still 25 percent below their 2008 peak.

Globally, prime residential prices rose by 0.8 percent in the first quarter of 2014 and by 6.1 percent over a 12-month period.

Jakarta, Dublin and Miami reported the highest annual growth, according to Knight Frank, with prices increases of 37.7 percent, 24.6 percent and 17.2 percent respectively.

While the rate of price rises slowed in Dubai, luxury price falls in Hong Kong and Singapore (5.2 percent and 8.7 percent respectively) reflected the continuing impact of cooling measures, the index said.

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