House price rises in Dubai slowed dramatically in the first quarter of 2014 but annual growth of more than 27 percent was still the highest in the world, real estate consultancy Knight Frank said on Monday.
Knight Frank’s Global House Price Index revealed that prices in Dubai rose by 3.4 percent in Q1, compared to 9.2 percent in the year-earlier period.
Data showed that Dubai topped the annual rankings for the fourth consecutive quarter and recorded price growth of 27.7 percent in the last year to the end of March.
However price rises slowed in the first three months of 2014, evidence that the doubling of transfer fees and mortgage cap are having an impact on the emirate’s property market.
The index, which analyses trends in more than 50 property markets around the world, showed that prices rose in the emirate by 14.3 percent in the six months to March.
China, Estonia, Turkey and Taiwan joined Dubai in the top five performing real estate markets over the past year.
Globally, prices rose by 0.6 percent in the first quarter of 2014, down from 1.2 percent in the previous quarter.
Croatia, Cyprus and Greece were the weakest-performing housing markets in the 12 months to March, according to Knight Frank, which added that 14 countries recorded a decline in house prices year-on-year, with 12 of these in Europe.
The Global House Price Index has risen for eight consecutive quarters but the rate of price growth slowed in the first three months of 2014.
Although the index saw slower growth in the first quarter of 2014, it still recorded annual growth of 7.1 percent.
Knight Frank said it expects to see the Index’s performance strengthen again in the second quarter.
Kate Everett-Allen, head of International Residential Research at Knight Frank, said: “For the first time since 2008 no single country tracked by the Global House Price Index has recorded an annual price fall in excess of 10 percent.”
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