Middle East leads global rise in house prices in 2010

Knight Frank study shows regional prices rose 5.3% although Dubai saw 6.1% decline last year
Middle East leads global rise in house prices in 2010
Dubai house prices fell 6.1 percent in 2010 despite a 2.8 percent rise globally, said Kinght Frank. (Getty Images)
By Andy Sambidge
Mon 28 Mar 2011 06:57 PM

House prices grew more than five percent in the Middle East in 2010 although Dubai properties fell by 6.1 percent, according to a new global survey.

The Knight Frank Global House Price Index, published on Monday, said the Middle East was one of three regions driving growth in prices last year.

It said that global house prices rose by 2.8 percent in the year to December 2010, with the highest growth seen in Asia-Pacific (7.5 percent), followed by the Middle East (5.3 percent) and South America (3.8 percent).

However, Dubai was one of the worst real estate markets in the world, with prices declining more than six percent up to Q3, which was the latest recorded data for the emirate, Knight Frank said.

The fastest risers in terms of countries were Hong Kong (20.1 percent), where the government is

fighting to pull speculative price growth under control, and Latvia (16.9 percent) which is bouncing back from a 70 percent fall in prices during the credit crunch.

Liam Bailey, head of Residential Research at Knight Frank, said: "Our main headline confirms relatively benign conditions - with average annual price growth across the world at a modest 2.8 percent.

"Of course this headline hides big regional and country level differences, but more concerning is the fact that this annual figure hides the fact that a  growing number of countries are seeing negative quarterly price movements," he added.

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