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Fri 4 Mar 2016 01:18 AM

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Dubai's prime property market among world's worst performing in 2015

Knight Frank Wealth Report ranks Dubai 96th out of 100 markets covered as prices slump 5.5% during last year

Dubai's prime property market among world's worst performing in 2015

Prime residential property markets in Dubai and Doha have been named among the world's worst performing during 2015, according to a new report.

Dubai was ranked 96th out of 100 real estate markets analysed with a property price decline of 5.5 percent.

The downturn in Dubai’s property market will continue throughout the course of this year, pushed by worsening investor sentiment, a local property consultancy warned earlier this week.

Research from Core Savills said that falling oil prices, a strong pipeline of new homes, the dirham’s peg to the strong US dollar and regional uncertainty were all contributors to recent declines in rents and prices.

The Qatari capital of Doha was ranked 85th in the global list with prices said to have fallen by 2.6 percent over the previous 12 months.

Knight Frank’s Prime International Residential Index ranked the Canadian city of Vancouver top, with 25 percent growth - outpacing other markets by some margin.

A lack of supply, coupled with foreign demand, spurred on by a weaker Canadian dollar, explained Vancouver’s outstanding performance, Knight Frank said.

The ranking, part of Knight Frank's annual Wealth Report, also showed that the value of the world’s leading prime residential property markets rose on average by 1.8 percent in 2015.

This was similar to the 2 percent overall growth seen in the previous year. However, in 2015 66 percent of the PIRI 100 locations recorded flat or positive price growth compared to 62 percent in 2014.

Of the 34 locations where prime prices slipped in 2015, 22 of these were located in Europe. Nonetheless, there is renewed optimism that prices in many of the region’s most popular second-home destinations are close to bottoming out, the report said.

Buenos Aires and Lagos were located at the bottom of the PIRI rankings. Buenos Aires saw prices drop by 8 percent and prime prices in Lagos declined by as much as 20 percent.

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